History
In 1975, President Ford created the Committee by Executive Order 11858. It was composed of the Secretaries of the Secretary of the Treasury as the chairman, Secretary of State, Secretary of Defense, Secretary of Commerce, the Assistant to the President for Economic Affairs, and the Executive Director of the Council on International Economic Policy. The Executive Order also stipulated that the Committee would have "primary continuing responsibility within the Executive Branch for monitoring the impact of foreign investment in the United States, both direct and portfolio, and for coordinating the implementation of United States policy on such investment." In particular, CFIUS was directed to:
- arrange for the preparation of analyses of trends and significant developments in foreign investments in the United States;
- provide guidance on arrangements with foreign governments for advance consultations on prospective major foreign governmental investments in the United States;
- review investments in the United States which, in the judgment of the Committee, might have major implications for United States national interests; and
- consider proposals for new legislation or regulations relating to foreign investment as may appear necessary.
In 1980, President Jimmy Carter added the United States Trade Representative and substituted the Chairman of the Council of Economic Advisers for the Executive Director of the Council on International Economic Policy by Executive Order 12188.
In 1988, the Exon–Florio Amendment was the result of national security concerns in Congress caused by the proposed purchase of Fairchild Semiconductor by Fujitsu. The Exon-Florio Amendment granted the President the authority to block proposed mergers, acquisitions, and takeovers that threaten national security. In 1988, President Ronald Reagan added the Attorney General and the Director of the Office of Management and Budget by Executive Order 12661.
In 1992, the Byrd Amendment required CFIUS to investigate proposed mergers, acquisitions, and takeovers where the acquirer is acting on behalf of a foreign government and effects national security. In 1993, President Bill Clinton added the Director of the Office of Science and Technology Policy, the National Security Advisor, and the Assistant to the President for Economic Policy by Executive Order 12860. In 2003, President George W. Bush added the Secretary of Homeland Security by Executive Order 13286.
The Foreign Investment and National Security Act of 2007 (FINSA) established the Committee by statutory authority, reduced membership to 6 cabinet members and the Attorney General, added the Secretary of Labor and the Director of National Security, and removed 7 White House appointees. In 2008, President Bush added the United States Trade Representative and the Director of the Office of Science and Technology Policy by Executive Order 13456 implementing the law. FINSA requires the President to conduct a national security investigation of certain proposed investment transactions, provides a broader oversight role for Congress, and keeps the President as the only officer with the authority to suspend or prohibit mergers, acquisitions, and takeovers.
Read more about this topic: Committee On Foreign Investment In The United States
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