WASHINGTON, DC - Today, Congressman Warren Davidson took to the House floor in support of the Foreign Investment Risk Review Modernization Act which passed the House today by a bipartisan vote of 400-2.

 

While the U.S. must maintain its support for foreign investment, the U.S. must also guard against rogue-state, corporate welfare. Corporate entities receiving funding from rogue states aim only to undermine our free market system.

 

H.R. 5841 would provide a comprehensive update to both the Committee on Foreign Investment in the United States (CFIUS) and the export control regime. CFIUS screens proposed foreign investments for national security risks and has not been updated since 2007.

 

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Transcript:

 

"I want to thank my colleagues for working together on this bipartisan legislation to address the intersection of national security, intellectual property and property rights.

 

"We have a responsibility to protect our free market system from threats abroad.

 

"Foreign, nationally backed corporations threaten the very existence of our free market system.

 

"How can the entrepreneur, living the American dream, fully thrive in the spirit of enterprise when competing against a foreign state.

 

"This legislation addresses many of these concerns, countries acting as companies, and this legislation was done so in a bipartisan, constructive manner.

 

"I appreciate the input and efforts from Members of both sides as well as those in the Administration and private sector on this meaningful. And with that Mr. Chairman I yield."

 

Background:

“This bill is a comprehensive reform of the Committee on Foreign Investment in the United States (CFIUS) - the first update of its kind in over a decade. CFIUS is authorized to review foreign investment transactions that may threaten our national security, and although these authorities have been wielded carefully, Congress must remain vigilant when delegating additional powers that may have far-reaching effects,” said Financial Services Committee Chairman Jeb Hensarling (R-TX) during today’s debate on the House Floor. “We target those transactions and countries – including China – that truly present a national security risk, but without giving bureaucrats free rein to strangle the investment and innovation that makes our country strong to begin with."

 

"For over two years, we have fought for CFIUS reform and the implementation of stronger policies to combat strategic and disruptive Chinese activities. Today, I am grateful that the House is taking action on this issue. This landmark legislation will take enormous steps to improve our foreign investment review process to prevent further transfers of military applicable technologies to the Chinese government," said Pittenger.

 

“In 2016, new foreign direct investment added $894 billion in value to the U.S. economy. But with a surge of malign investment by the Chinese in U.S. assets resulting in the theft of American intellectual property and the transfer of critical technology, it is vital that Congress modernize both the Committee on Foreign Investment in the United States and our export controls. We can do this by closing loopholes and preventing adversaries from obtaining access to sensitive personal data and critical technology or gaining influence over the management or operations of critical infrastructure in the United States. At the same time, preserving an open investment climate is critical to American competitiveness and economic strength, which is itself a component of American national security. I am proud of the Committee’s work to implement these needed, nonpartisan reforms and I want to especially thank Chairman Hensarling, Representative Pittenger, and House Leadership for their important work to bolster both economic growth and strong national security," said Representative Andy Barr (R-KY), Chairman of the Subcommittee on Monetary Policy and Trade.

 

The Financial Services Committee favorably reported this bill to the House in May 2018 by a unanimous vote of 53-0.

 

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