Committee on Foreign Investments in the United States (CFIUS)

Committee on Foreign Investments in the United States (CFIUS)

  • “The United States has traditionally welcomed Foreign Direct Investment (FDI) and provided foreign investors fair, equitable and nondiscriminatory treatment with few limited exceptions designed to protect national security. The Exon-Florio provision is implemented within the context of this open investment policy. The intent of Exon-Florio is not to discourage FDI generally, but to provide a mechanism to review and, if the President finds necessary, to restrict FDI that threatens the national security. The Exon-Florio provision is implemented by the Committee on Foreign Investment in the United States (“CFIUS”), an inter-agency committee chaired by the Secretary of Treasury. CFIUS seeks to serve U.S. investment policy through thorough reviews that protect national security while maintaining the credibility of our open investment policy and preserving the confidence of foreign investors here and of U.S. investors abroad that they will not be subject to retaliatory discrimination.”

    • Related documents:

  • International Investment and Trade in Services Survey Act, 22 U.S.C. 3101
  • CRS Report, The Exon-Florio National Security Test for Foreign Investment, July 15, 2005 (6 pages, PDF) – Summary: “The proposed acquisition of Unocal by the China National Offshore Oil Corporation (CNOOC) has sparked intense concerns among some Members of Congress and the public and has reignited the debate over what role foreign acquisitions play in U.S. national security. While the United States actively promotes internationally the policy of relaxing rules concerning foreign investment, including the national treatment of foreign firms, some in Congress and others question some aspects of this policy as it relates to allowing foreign competitors unlimited access to the Nation’s industrial base. Much of this debate focuses on the activities of a relatively obscure committee, the Committee on Foreign Investment in the United States (CFIUS) and the Exon-Florio provision, which gives the President broad powers to block certain types of foreign investment. This report will be updated as warranted by events.”

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