In this report, we examine today’s House FinServ Monetary Policy and Trade subcommittee hearing on reforming CFIUS while preserving what all members considered to be the important role of foreign investment. Chairman Barr (R-KY) indicated that this will be the first in a series of hearings and many members on both sides of the aisle pointed to rising Chinese technology acquisitions as justification for reviewing whether CFIUS has adequate authority and resources. The Chairman also praised legislative efforts by Sen. Cornyn (R-TX) and Rep. Pittenger (R-NC) to reform the committee. Rep. Pittenger argued that his legislation would enhance scrutiny of Chinese acquisitions without singling the country out and said that members of the Trump administration support the approach. While Rep. Heck (D-WA) criticized Treasury as once unresponsive to his calls for reform, it is now engaging constructively. He also pushed for legislation expanding CFIUS authorities. Rep. Sherman (D-CA) called for CFIUS to consider foreign control of industries rather than just ownership and Rep. Hill (R-AR) called for greater scrutiny of technology licensing agreements.
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