Congress CFIUS Foreign Investor
On Jan. 9, House FSC held hearing on CFIUS foreign investments.
- Monetary policy and trade subcommittee reviewed US foreign investment process.
- With operations of Committee on Foreign Investment in the United States (CFIUS).
- Sought to modernize CFIUS review, to avoid US business harm, maintain security.
- Witness Statements
- Foreign investment needed safeguards against any threats U.S. national security.
- Statute for CFIUS - has not been updated in a decade and should be modernized.
- Witnesses said need reforms, ineffective as substitute technology control vehicle.
- Imposing this regime on US technology business, could undermine US innovation.
- Uncertainty could encourage new research and development, to move outside US.
- Could undermine US innovation and technology development in defense/economy.
- Foreign Ownership
- Foreign investments is subject to regulation only to protect vital national interests.
- US well served by regulatory processes that are transparent, predictable, efficient.
- Any amendments should replicate deliberative processes followed in 2007 to 2008.
- Discussed how to identify Chinese firms, recent acquisition routed through Ireland.
- Best way for CFIUS to determine control of a firm is to trace the money being used.
- Layers of subsidiaries and shell companies mean any other methods can be gamed.
- Reforming CFIUS process to include IP protection evaluation is important next step.
- Jan. 2018 Senate Hearing
- On Jan. 18, 2018, Senate hearing on CFIUS, Sen. Brown issued opening statement.
- Brown concern that firms seek to capture intellectual property of tech companies.
- Committee chair Sen, Crapo issued opening statement at hearing on CFIUS reform.
||House; Senate; US Treasury
||PR, 1/18/2018; PR, 1/09/2017
||AML; Anti-Bribery; C-Suite; Financial; Reporting; Treasury
||China; United States of America; Cross-Border
||AML & Enforcement
Last substantive update on 01/18/2018