Naiveté About CFIUS And U.S. National Security Policy Towards Foreign Investment

It’s hardly a secret that enterprises based in large emerging markets are clamoring to invest directly in U.S. companies—as well as in companies based in other advanced countries with hospitable economic environments—particularly through the acquisition of existing businesses. Foreign direct investment (FDI)—the ownership or control by a foreign entity of 10 percent or more of a domestic enterprise—plays a modest but growing role in the U.S. economy.

Problem is that an increasing number of these foreign investors are from nations where there is significant involvement in business decisions by governments whose agendas are perceived—indeed known—to go way beyond commercial objectives. China, while hardly alone in not having effective separation between government and business, including in its FDI pursuits in the U.S., epitomizes the case.

Source: forbes.com