Rep. Robert Pittenger
Pittenger legislation endorsed by Treasury Secretary, Defense Secretary, and Attorney General as President Trump prioritizes IP Theft in National Security Strategy
WASHINGTON – Today, President Donald Trump announced an “America First” national security strategy which specifically targets the theft or strategic acquisition of intellectual property and sensitive technology by China and other adversarial foreign powers.
New legislation from Congressman Robert Pittenger (NC-09) and Senate Majority Whip John Cornyn (R-TX) would address that issue by modernizing the Committee on Foreign Investment in the United States (CFIUS), which hasn’t been substantially reformed since the Ford Administration.
“Chinese investment in the United States has grown from $4.5 billion in 2010 to $46 billion last year. They are targeting our military and security-related technology. Since late 2014, the Chinese have acquired 43 semiconductor companies, 20 of which are based in the United States. This technology has critical military applications and these acquisitions challenge our defense supply chain. This is actually part of President Xi’s five-year plan” explained Congressman Pittenger. “President Trump is restoring American leadership with today’s national security strategy, which includes steps to address malicious Chinese investment. Already, Treasury Secretary Mnuchin, Defense Secretary Mattis, and Attorney General Sessions have endorsed our legislation to reform CFIUS, strengthening the review of foreign investments.”
Defense Secretary James Mattis, Treasury Secretary Steven Mnuchin, and Attorney General Jeff Sessions have officially endorsed Congressman Pittenger’s CFIUS reform legislation, the Foreign Investment Risk Review Modernization Act.
In addition, the National Security Strategy specifically supports efforts to reform CFIUS: “While maintaining an investor-friendly climate, this Administration will work with the Congress to strengthen the Committee on Foreign Investment in the United States (CFIUS) to ensure it addresses current and future national security risks.
TREASURY SECRETARY MNUCHIN: “I support the goals of FIRRMA, which will help to ensure that CFIUS has the tools necessary to protect the national security of the United States, while simultaneously maintaining our open investment environment. I stand ready to work with Senators Cornyn, Feinstein, and Burr, Congressman Pittenger, the committees of jurisdiction, and other Members of Congress as this important legislation advances,” said U.S. Treasury Secretary Steven Mnuchin. (12/14/2017)
ATTORNEY GENERAL SESSIONS: “I am particularly supportive of the goals of several aspects of your proposed legislation, including but not limited to (1) the expansion of CFIUS’s authority to review certain transactions that may pose national security concerns; (2) an expanded list of national security factors that CFIUS should consider; and (3) mandatory disclosures of certain investments by state-owned enterprises,” said U.S. Attorney General Jeff Sessions. (12/13/2017)
DEFENSE SECRETARY MATTIS: “As the national security landscape changes, the existing process and authorities must be updated. DoD depends on critical, foundational, and emerging technologies to maintain military readiness and preserve our technological advantage over potential adversaries. FIRRMA would help close related gaps that exist in both the Committee on Foreign Investment in the United States (CFIUS) and export control processes, which are not presently keeping pace with today’s rapid technological changes.” (12/15/17)
BACKGROUND
The Committee on Foreign Investment in the United States (CFIUS) is the only government mechanism to ensure potential foreign investments do not harm our national security. However, CFIUS has not been substantially updated since the Ford Administration.
The Foreign Investment Risk Review Modernization Act, introduced on November 8th, 2017 by Congressman Pittenger and Senator Cornyn:
*Expands CFIUS jurisdiction to include joint ventures, minority position investments, and real estate transactions near military bases and other sensitive national security facilities.
*Updates CFIUS definition of “critical technologies” to include emerging technologies that could be essential for maintaining the U.S. technological advantage over countries that pose threats.
*Adds new national security factors to the review process.
*Strengthens the government’s ability to protect American “critical infrastructure” from foreign government disruption.
Click here for video of Congressman Pittenger’s interview with Fox News on efforts to block foreign investments which threaten America’s national security.
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