Recently, CFIUS has been in the news due to its increased scrutiny of Chinese investments in U.S. tech companies, particularly in sensitive sectors like artificial intelligence and semiconductors. This heightened focus comes amid concerns about intellectual property theft and national security risks posed by foreign ownership of critical technologies.
Established in 1975, CFIUS operates as an inter-agency committee of the U.S. government, chaired by the Secretary of the Treasury. Its primary mandate is to review foreign investments in U.S. companies to assess potential national security implications. CFIUS evaluates transactions based on factors such as the acquirer's ties to foreign governments, the nature of the technology or industry involved, and the potential impact on U.S. national security. If deemed necessary, CFIUS can recommend that the President block or unwind a deal.