Yellen details tighter scrutiny of investment plans of foreign-owned companies operating in the US
The Biden administration plans to increase scrutiny of the investment plans of foreign-owned companies operating in the United States
WASHINGTON — The Biden administration plans to increase scrutiny of the investment plans of foreign-owned companies operating in the United States.
“National security is a foremost priority, and we deploy a wide range of tools to safeguard it,” Treasury Secretary Janet Yellen said Thursday.
The federal government reviews and can block business activity of non-U.S. companies through the Committee on Foreign Investment in the United States, also known as CFIUS. At a conference dedicated to the committee, Yellen emphasized that CFIUS is adapting to a changing global economy as national security issues related to China are a primary consideration.
“As new threats and vulnerabilities emerge, our national security priorities shift in response,” Yellen said. “We've also renewed our focus on enforcement.”
The committee, chaired by the treasury secretary, is made up of members from the departments of State, Justice, Energy and Commerce. It has become the central tool for screening mergers, business agreements and data sharing.
Lawmakers have recently highlighted for possible review deals involving video sharing platform Tiktok and its Chinese parent company, ByteDance as well as X, the social media site formerly known as Twitter, and the PGA and LIV. The committee does not publicly comment on these deals because that is prohibited by law.
The committee has gained expanded powers in the past five years to investigate more business deals, and agency leadership is outlining how it intends to enforce rules on investing in the U.S.
In prepared remarks, Paul Rosen, the treasury undersecretary for
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