03/29/2024

Rep. Robert Pittenger

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Rep. Robert Pittenger

WASHINGTON – Secretary of Defense James Mattis has written the House and Senate Armed Services Committees to urge support for Congressman Robert Pittenger’s Foreign Investment Risk Review Modernization Act (FIRRMA, H.R. 4311).

“The Department of Defense (DoD) strongly supports foreign investment in the United States, consistent with the protection of national security.  DoD also believes we must be clear-eyed that our adversaries have studied the weaknesses of our current laws and regulations and are exploiting them today,” writes Secretary Mattis.

“DoD depends on critical, foundational, and emerging technologies to maintain military readiness and preserve our technological advantage over potential adversaries.  Of particular concern is the national security risk that may arise from coercive industrial policies that force the transfer of technology and associated support through joint ventures.  FIRRMA would help close related gaps that exist in the Committee on Foreign Investment in the United States (CFIUS) process, which is not presently keeping pace with today’s rapid technological changes,” writes Secretary Mattis in his letters dated May 4, 2018.

Congressman Pittenger (NC-09) and Senate Majority Whip John Cornyn (R-TX) introduced FIRRMA on November 8th, 2017.  The legislation has also been publicly endorsed by The White House, Treasury Secretary Steven Mnuchin, and Attorney General Jeff Sessions.

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.

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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