Proposed legislation that would sharpen the law governing U.S. national security reviews by the Committee on Foreign Investment in the United States (CFIUS) continues to move through Congress with bipartisan support, and seems destined to become law in the next several months. Bills approved recently by committees in both houses of Congress continue to focus on increasing scrutiny of foreign investments in U.S. critical technology companies and investments by Chinese companies, although some of the more draconian measures included in the original bill have been stripped. Most noticeable among the changes is a retreat from an attempt to extend CFIUS jurisdiction to outbound investments such as joint ventures located abroad. The committee bills would instead address such extraterritorial concerns by making changes to U.S. export control laws.
Special thanks to Lisa Raisner, Head of Government Relations, for her assistance with this publication.