WASHINGTON – 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.
Today, Congressman Robert Pittenger (NC-09) and Senate Majority Whip John Cornyn (R-TX) introduced bipartisan, bicameral legislation to modernize the national security review of potential foreign investments in the United States.
“China is buying American companies at a breathtaking pace. While some are legitimate business investments, many others are part of a backdoor effort to compromise U.S. national security,” said Congressman Pittenger. “For example, China recently attempted to purchase a U.S. missile defense supplier using a shell company to evade detection. The global economy presents new security risks, and so our bipartisan legislation provides Washington the necessary tools to better track and evaluate Chinese investment. Thank you to Senator Cornyn for joining with me to provide leadership on these issues, and I look forward to helping push this bill into law.”
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 today 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.
The House version of this legislation, introduced today by Congressman Pittenger, is co-sponsored by House Intelligence Committee Chairman Devin Nunes (CA-22) and Representatives Chris Smith (NJ-04), Vicky Hartzler (MO-04), Ted Yoho (FL-03), Mike Rogers (AL-03), Rosa DeLauro (CT-03), Mike Gallagher (WI-08), Martha Roby (AL-02), David Loebsack (IA-02), Denny Heck (WA-10), Randy Weber (TX-14), Sam Johnson (TX-03), and John Culberson (TX-07).
The Senate version of this legislation, introduced today by Senate Majority Whip John Cornyn (R-TX), is co-sponsored by Senate Intelligence Committee Chairman Richard Burr (R-NC) and Senators Diane Feinstein (D-CA), Gary Peters (D-MI), Marco Rubio (R-FL), Amy Klobuchar (D-MN), Tim Scott (R-SC), Joe Manchin (D-WV), John Barrasso (R-WY), and James Lankford (R-OK).
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