What is behind CFIUS's probe into Tik Tok?
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On Sept. 24, the Federal Register published two proposed rules from the U.S. Treasury Department governing the implementation of provisions from the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA).
The Committee on Foreign Investment in the United States (CFIUS) protects U.S. national security by regulating against attempts by foreign commercial efforts to obtain control in a U.S. trade or business.
As the G20 summit in Buenos Aires gets underway, speculation continues to mount over whether U.S. President Donald Trump and Chinese President Xi Jinping can achieve a breakthrough that would put a floor under U.S.-China trade tensions and the ever-deteriorating bilateral relationship.
After several months of back-and-forth, the Senate and House of Representatives agreed on a consensus version of the Foreign Investment Risk Review Modernization Act (FIRRMA) on July 23. FIRRMA reforms the Committee on Foreign Investment in the United States (CFIUS) process currently used to evaluate and address national security-related concerns related to foreign investment into the United States.
If one defines technology as anything that extends human capability, it takes only a short logical leap to conclude that nearly any advantage in technological capability over a competitor entails potential military advantage over that competitor.
Since its creation by President Gerald Ford, the Committee on Foreign Investment in the United States (CFIUS) has acted as a gatekeeper, working to ensure that foreign acquisitions do not impair U.S. national security.
Late last month, I wrote about the draft proposal from the Trump administration to nationalize the American 5G network as a way of protecting it against foreign influence. Though I was skeptical of the methods chosen, I was more appreciative of the assessment of the problem:
Should Chinese state-owned enterprises (SOE) be free to take control of U.S. companies or companies that otherwise affect the United States’s national security interests? That’s one of the questions tackled in November by the U.S.-China Economic and Security Review Commission (USCC), and one that is regularly faced by the Committee on Foreign Investment in the United States (CFIUS).