Committee on Foreign Investment in the United States

The Committee on Foreign Investment in the United States, CFIUS, was
created in 1975 to provide guidance on arrangements with foreign
governments for advance consultations on prospective major foreign
governmental investments in the United States, and to consider proposals
for new legislation or regulation relating to foreign investment.

The authority was amended by Section 5021 (the Exon-Florio provision) of
the Omnibus Trade and Competitiveness Act of 1988 (Section 721 of the
Defense Production Act), which gives the President authority to review
mergers, acquisitions, and takeovers of U.S. companies by foreign interests
and to prohibit, suspend, or seek divestiture in the courts of investments
that may lead to actions that threaten to impair the national security.

By Executive Order in December 1988, Treasury has authority to implement
the Exon-Florio provision. CFIUS has 11 members: the Secretaries of the
Treasury (the chair), State, Defense, and Commerce, the chairman of the
Council of Economic Advisors, the U.S. Trade Representative, the Attorney
General, the Director of the Office of Management and Budget, the Director
of the Office of Science and Technology Policy, the Assistant to the
President for National Security Affairs, and the Assistant to the President
for Economic Policy.

The Assistant Secretary for Trade Development serves as Commerce's
representative to CFIUS. The Commerce working group is chaired by the
International Trade Administration and includes the Bureau




of Export Administration, the Economics and Statistics Administration, the
Technology Administration, and the Office of the General Counsel.