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Foreign Investment Review

Committee on Foreign Investment in the U.S. (CFIUS)

Per a 1975 executive order, the Committee on Foreign Investment in the United States is an interagency committee that reviews certain foreign acquisitions, mergers, or takeovers of U.S. businesses to determine the effect of a transaction on the national security of the United States. The Committee is chaired by the Secretary of the Treasury and includes nine voting members. Under the authority, direction, and control of the Under Secretary of Defense for Acquisition and Sustainment Industrial Policy manages the Committee on Foreign Investment in the United States process for the Department.

COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES PROCESS
  • Committee on Foreign Investment in the United States is notified of a foreign acquisition of a U.S. entity
  • Committee has 45 days to determine whether the transaction threatens national security
  • Transaction is approved OR an additional 45-day Presidential investigation is initiated
  • Transactions can be approved as-is, with mitigation, or they are sent to White House with a recommendation for action
For more information on the Committee on Foreign Investment in the United States process, please visit Department of Treasury's Committee on Foreign Investment in the United States website.

Foreign Investment Trends and Non-Notified CFIUS Cases

The Committee on Foreign Investment in the United States plays a vital role in reviewing potential problems related to foreign investment in U.S. companies. Industrial Policy reviews foreign investment activity in the defense sector to determine if there are any potential impacts to the U.S. defense industrial base. These findings are used to determine whether a Committee on Foreign Investment in the United States review is warranted.

PRIMARY ACTIVITIES
  • Offering a robust foreign investment review process
  • Preparing weekly newsletter outlining foreign investment activities of interest to disseminate to government stakeholders
  • Transaction is approved OR an additional 45-day Presidential investigation is initiated
  • Working with the Department of Defense and other government agencies to ascertain whether activity should be reviewed and referred to the Committee on Foreign Investment in the United States.

 

Resources

 
  • IndPol is currently revising Department of Defense 2000.25 Department of Defense Procedures for Reviewing and Monitoring Transactions Filed with the Committee on Foreign Investment in the United States (current instructions can be found here).
  • Annual reports pertaining to past Committee on Foreign Investment in the United States cases can be viewed at the Department of Treasury website. Read more.