WASHINGTON – The House Financial Services Committee today unanimously voted to approve Congressman Robert Pittenger’s (NC-09) landmark legislation to modernize the national security review process of potential foreign investments in the United States.
Chinese investment in the United States increased more than 900 percent between 2010 and 2016. Much of this investment was part of a strategic, coordinated, Chinese government effort to target critical American infrastructure and defense applicable technologies.
The Foreign Investment Risk Review Modernization Act (FIRRMA, H.R. 5841), strengthens how the Committee on Foreign Investment in the United States (CFIUS) reviews the national security risks of potential foreign investments.
“For months, we have fought for the strongest CFIUS reform bill possible that would preserve our foreign investment while preventing the sale of critical military related technology companies,” said Congressman Pittenger in his opening statement.
“Today, we reach a milestone where committee action is imminent, which is a huge step forward for the “cause” of CFIUS reform.
“The House Financial Services package, which I am the sponsor of, includes a number of reforms to strengthen the current system and prevent the flow of military-applicable technologies to the Chinese government…
“…History will record whether we have done our job to prevent the transfer of proprietary intellectual property and critical technologies to adversarial governments.
“To this end, I am encouraged with the monumental step this markup represents, and I am grateful for the opportunity to help move forward important legislation to reform CFIUS and export controls.”
CLICK HERE for Congressman Pittenger’s full opening statement.
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 in many years.
Congressman Pittenger and Senate Majority Whip John Cornyn (R-TX) introduced FIRRMA on November 8th, 2017. The legislation has been publicly endorsed by the White House, Defense Secretary Jim Mattis, Attorney General Jeff Sessions, Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, Senate and House Intelligence Chairs Richard Burr and Devin Nunes, and hundreds of defense experts, generals, elected officials and private businesses.
The Foreign Investment Risk Review Modernization Act:
- 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.
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