The Committee on Foreign Investment in the United States (CFIUS) is an interagency body, chaired by the Secretary of the Treasury, that reviews foreign investments and certain real-estate transactions involving U.S. businesses for national-security risks. Member agencies include the Departments of Defense, State, Commerce, Homeland Security, Justice, and Energy, plus the Office of the U.S. Trade Representative and the Office of Science and Technology Policy.
CFIUS traces its origins to a 1975 executive order under President Ford. Its modern statutory basis is Section 721 of the Defense Production Act of 1950, substantially amended by the Exon-Florio Amendment (1988), the Foreign Investment and National Security Act (FINSA, 2007), and most significantly the Foreign Investment Risk Review Modernization Act (FIRRMA, 2018). FIRRMA expanded CFIUS jurisdiction beyond classic "control" acquisitions to cover certain non-controlling investments in U.S. businesses involved in critical technologies, critical infrastructure, and sensitive personal data (so-called TID U.S. businesses), as well as some real-estate transactions near sensitive sites.
A review can be triggered by a voluntary notice from the parties, a mandatory declaration (required in specified cases), or unilaterally by CFIUS itself, including for already-closed deals. The process typically involves an initial 45-day review, an optional 45-day investigation, and possible referral to the President, who may block or unwind a transaction. Outcomes range from clearance, to clearance with mitigation agreements, to abandonment under pressure, to a formal presidential prohibition.
Politically, CFIUS has become a central tool of U.S. economic statecraft, particularly toward Chinese investors. Notable presidential blocks include the 2017 prohibition of Canyon Bridge's acquisition of Lattice Semiconductor and the 2018 blocking of Broadcom's bid for Qualcomm. CFIUS also forced the partial divestment of Grindr by Beijing Kunlun in 2019–2020 and ordered ByteDance to divest TikTok's U.S. operations in 2020, an order that triggered protracted litigation and negotiation.
Example
In 2018, President Trump invoked CFIUS findings to block Singapore-based Broadcom's $117 billion hostile bid for U.S. chipmaker Qualcomm on national-security grounds.
Frequently asked questions
Most filings are voluntary, but FIRRMA introduced mandatory declarations for certain deals involving critical technologies, critical infrastructure, sensitive personal data, or substantial foreign-government interests.
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