CFIUS, FIRRMA and Emerging Technology Update


Recent Developments

  • August 2018, John S. McCain National Defense Authorization Act for Fiscal Year 2019 (NDAA) (H.R. 5515, 115th Cong. (2018))
    Companion legislation: approaching the problem from different angles
    – Foreign Investment Risk Review Modernization Act (FIRRMA)
    – CFIUS – Reviews foreign investment in the US
    – Export Control Reform Act (ECRA)
    – BIS – Reviews exports, reexports and transfers (in country)
  • Policy Objectives
    – Slowing down Chinese leadership in emerging technology
    – Maintaining the integrity of supply chains
    – Identifying trusted investors aligned with US national security and foreign policy interests
    – On November 10, 2018, the CFIUS Pilot Program came into effect, implementing mandatory declaration filings
    – On February 13, 2020, comprehensive new regulations came into effect implementing FIRRMA (and ending the pilot program)
  • ECRA
    – Two rules defining control parameters for certain emerging technologies

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