Gallagher Sponsors Bill to Enhance National Security Review of Foreign Investment in U.S.
Washington, D.C. – Today Rep. Gallagher signed on as an original co-sponsor of the Foreign Investment Risk Review Modernization Act. The bipartisan, bicameral piece of legislation seeks to modernize the national security review of potential foreign investment in the United States in order to safeguard the U.S. from malign global actors. The legislation is in response to Chinese investment in the United States which has increased more than 900 percent between 2010 and 2016—much of which has targeted advanced technologies with potential defense applications.
Rep. Gallagher released the following statement in response to the bill:
“American technological innovation is the backbone of our military’s strength. While we welcome good-faith investments in our economy, in recent years, strategic competitors such as China have sought to exploit shortcomings in CFIUS’ review processes in order to acquire cutting-edge U.S. technologies in areas such as artificial intelligence. I am proud to sponsor this vital legislation, which strikes a crucial balance between protecting our national security and growing our economy.”
The Committee on Foreign Investment in the United States (CFIUS) is the only government mechanism to ensure potential foreign investments do not harm our national security. However, CFIUS has not been substantially updated since the Ford Administration.
The Foreign Investment Risk Review Modernization Act, introduced today:
- Expands CFIUS jurisdiction to include joint ventures, minority position investments, and real estate transactions near military bases and other sensitive national security facilities.
- Updates CFIUS definition of “critical technologies” to include emerging technologies that could be essential for maintaining the U.S. technological advantage over countries that pose threats.
- Adds new national security factors to the review process.
- Strengthens the government’s ability to protect American “critical infrastructure” from foreign government disruption.