U.S. Department of the Treasury

The United States welcomes foreign investment in the technology industry and maintains a strong commitment to the rule of law and the protection of intellectual property.  The United States provides unique opportunities to tap into advanced research and innovation and a skilled workforce.  Pursuant to Section 721, as amended by FIRRMA, CFIUS will continue to assess on a case-by-case basis whether a particular transaction (regardless of industry) poses a risk to U.S. national security.

The United States welcomes foreign investment and is the best place to invest worldwide due to its strong economic growth policies, innovation ecosystem, and highly developed market.  The CFIUS process, as modernized and strengthened by FIRRMA, enhances confidence in the nation’s longstanding open investment policy by continuing to restrict only those foreign investments that pose national security concerns.

The United States has a longstanding open investment policy, and we maintain strong relationships with our allies and partners on investment.  FIRRMA strengthens these relationships by enabling the United States to work more closely with allies and partners on national security issues related to foreign investment.  This enhances confidence in investments made by those allies and partners in the United States now and in the future. 

Like prior CFIUS legislation, FIRRMA does not single out investors from any specific country.  CFIUS’s authorities may be applied to address the national security risks posed by foreign investment in the United States, regardless of where the investment originates.  Investors from certain countries may qualify as “excepted investors” based on whether they meet specified criteria in the CFIUS regulations.  Meeting these criteria may exempt certain investors from CFIUS jurisdiction over certain transactions, or from mandatory filing

requirements.  For further information, refer to the Excepted Foreign States page.  

CFIUS remains focused exclusively on national security.  CFIUS examines the effects of a transaction and assesses the impact of those effects on the national security of the United States.  Section 721, as amended by FIRRMA, helps CFIUS protect our national security from emerging risks.

By modernizing CFIUS, FIRRMA strengthens the government’s ability to protect national security while preserving the longstanding open investment policy of the United States.  At its core, FIRRMA expands the scope of transactions reviewable by CFIUS to address more effectively current national security concerns.  CFIUS was last updated more than a decade prior to FIRRMA’s enactment and its jurisdiction had remained unchanged in the 30 years since Congress passed the Exon-Florio Amendment, which created Section 721 of the Defense Production Act of 1950, the statutory cornerstone of CFIUS.  Both the nature of foreign investments in the United States and the national security landscape have shifted significantly since then.

On August 13, 2018, the President signed into law the Foreign Investment Risk Review Modernization Act of 2018, or FIRRMA.  FIRRMA strengthens and modernizes CFIUS, a multi-agency government body chaired by the Secretary of the Treasury that reviews foreign investment for national security considerations.

Voluntary notices filed with the Committee generally require payment of a filing fee.  Declarations do not require payment of a filing fee.  See the CFIUS Filing Fees page for more information.

The “completion date” is the earliest date upon which any ownership interest is conveyed, assigned, delivered, or otherwise transferred to a person [31 C.F.R. § 800.206].  In a transaction where the ownership interest is conveyed before the foreign person receives the corresponding rights, the “completion date” is the earliest date upon which the foreign person acquired any of the equity interest.  For example, if Company A acquired a 25 percent ownership interest in Company B on July 1, but its right to control Company B was deferred until after CFIUS reviews the transaction, the “completion date” for the transaction is July 1.  If the transaction is subject to the mandatory declaration requirement pursuant to 31 C.F.R. § 800.401, the latest date that the parties can file the transaction with CFIUS is June 1.  Note that contingent equity interests are assessed separately under 31 C.F.R. § 800.207.

Pursuant to 31 C.F.R. §§ 800.503 and 802.503, “Day 1” is the date on which the Staff Chairperson accepts a voluntary notice, which occurs the next business day after the Staff Chairperson has: (1) determined that the notice complies with § 800.502 (or § 802.502, as applicable); confirmed that the applicable filing fee has been received, or waived; and (3) disseminated the notice to all members of the Committee.  The time that it takes for the Staff Chairperson to accept a voluntary notice after it has been submitted by the parties depends upon a variety of factors, including the notice itself and whether parties have submitted a draft notice before submitting the formal notice.