The Committee on Foreign Investment in the United States (CFIUS) is an inter-agency committee of the U.S. Government that reviews the national security implications of foreign investments in U.S. companies or operations. CFIUS was established by Executive Order 11858 in 1975. The committee gained additional authority after Ronald Reagan delegated Presidential oversight to CFIUS in Executive Order 12661 in 1988. This was in response to U.S. Congress giving authority to the President to review foreign investments in the Exon-Florio Amendment.
The members of CFIUS include the heads of the Departments of Treasury, Justice, Homeland Security, Commerce, Defense, State, and Energy, and Offices of the U.S. Trade Representative and Science and Technology Policy. The following offices also observe and, as appropriate, participate in CFIUS's activities: Office of Management and Budget, Council of Economic Advisors, National Security Council, National Economic Council, and Homeland Security Council. The Director of National Intelligence and the Secretary of Labor are non-voting, ex-officio members of CFIUS with roles as defined by statute and regulation.
How CFIUS works Edit
CFIUS follows a process established by statutes and regulations for examining certain transactions that could result in foreign control of U.S. businesses. Parties generally submit voluntary notices of transactions to CFIUS, but CFIUS also has the authority to initiate reviews unilaterally. Pursuant to the Foreign Investment and National Security Act of 2007, CFIUS must complete a review of a covered transaction within 30 days. In certain circumstances, following the review, CFIUS may initiate an investigation that may last up to 45 additional days.
If CFIUS finds that the covered transaction presents national security risks and that other provisions of law do not provide adequate authority to address the risks, then CFIUS may enter into an agreement with, or impose conditions on, the parties to mitigate such risks. If the national security risks cannot be resolved and the parties do not choose to abandon the transaction, CFIUS may refer the case to the President, who can choose whether to suspend or prohibit the transaction.
- ↑ 31 C.F.R. §§800.401 (procedures for notice), 800.402 (contents of voluntary notice). See also Department of the Treasury, Committee on Foreign Investment in the United States Process Overview (overview.aspx full-text).
- ↑ Pub. L. No. 110–49, 121 Stat. 246 (2007), amending the Defense Production Act of 1950, §721, Act of Sept. 8, 1950, ch. 932, 64 Stat. 798, codified at 50 App. U.S.C. §2170.
- ↑ 50 App. U.S.C. §2170(b)(1)(E); 31 C.F.R. §800.502 (beginning of thirty-day review). See also Department of the Treasury, Committee on Foreign Investment in the United States Process Overview (full-text).
- ↑ 31 C.F.R. §§ 800.503 (determination of whether to undertake an investigation), 800.504 (determination not to undertake an investigation), 800.505 (commencement of investigation), 800.506 (completion or termination of investigation and report to the President). See also Department of the Treasury, Committee on Foreign Investment in the United States Process Overview (overview.aspx full-text). Parties to a transaction may request withdrawal of their notice at any time during the review or investigation stages. CFIUS must approve the requests and may include conditions on the parties, such as requirements that they keep CFIUS informed of the status of the transaction or that they re-file the transaction at a later time. See 31 C.F.R. §800.507 (withdrawal of notice). CFIUS tracks withdrawn transactions. See Department of the Treasury, Committee on Foreign Investment in the United States Process Overview (full-text).
- ↑ See Department of the Treasury, Committee on Foreign Investment in the United States Process Overview (full-text). If CFIUS finds that the transaction in a notice does not present any national security risks or that other provisions of law provide adequate and appropriate authority to address the risks, then CFIUS will advise the parties in writing that CFIUS has concluded all action for the transaction.