Chinese investment in the United States increased more than 900 percent between 2010 and 2016. While some were legitimate business investments, many others were part of a strategic, coordinated, Chinese government effort to target critical American national security infrastructure and technology.
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, so Congressman Pittenger and Senate Majority Whip John Cornyn (R-TX) have partnered on bipartisan, bicameral legislation to modernize the national security review of potential foreign investments in the United States.
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 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 Foreign Investment Risk Review Modernization Act has been endorsed by The White House, Defense Secretary James Mattis and five former Secretaries of Defense, Attorney General Jeff Sessions, Treasury Secretary Stephen Mnuchin, and Commerce Secretary Wilbur Ross. The House Financial Services Committee unanimously approved Congressman Pittenger's legislation in May, and the full House is expected to vote on the bill this summer. MORE DETAILS on Foreign Investment Risk Review Modernization Act (H.R. 5841)