The bipartisan bill will strengthen the reach of CFIUS while strengthening U.S national security and preserving U.S. open investment policy.
The Trump Administration has lent its weight to a bipartisan bill making its round in the U.S. Congress, which is aimed at toughening U.S. foreign investment rules midst growing concerns of Chinese efforts to acquire U.S. high-technology companies, said the White House in a statement.
The legislation will not only strengthen the overview of the Committee on Foreign Investment in the United States (CFIUS), but also empower the government to intervene on foreign purchases of U.S. firms.
As per the White House, the bill “would achieve the twin aims of protecting national security and preserving the longstanding United States open investment policy,” said the White House in a statement.
The legislation, introduced by Republican Senator John Cornyn and Republican Representative Robert Pittenger, in November 2017, have Democratic co-sponsors.
On Thursday, the Senate Banking Committee is set to hold a hearing on this topic.
The proposed bill will significantly expand CFIUS’ reach to allow it to examine smaller investments and add a new national security angle to its consideration among other factors, which include whether the Social Security Numbers of Americans will be exposed, or whether the deal would facilitate fraud.