U.S. SENATE — During a hearing in the Senate Appropriations Subcommittee on Financial Services and General Government, Treasury Secretary Steven Mnuchin told U.S. Senator Steve Daines that congressional modernization of the Committee on Foreign Investment in the U.S. (CFIUS) must include jurisdiction over joint-ventures.
CFIUS’ jurisdiction over joint-ventures is critical as China regularly requires U.S. companies to create joint-ventures with Chinese counterparts to do business in China. These joint-ventures often result in mandatory technology transfers, equity limits, and other onerous regulations that can restrict market access, impede U.S. innovation, and serve as a long-term threat to national security.
During the hearing, Daines questioned Secretary Mnuchin about the previous concerns he had expressed regarding CFIUS currently not covering joint-ventures and asked whether the Administration would support legislation that would expand CFIUS’ jurisdiction to include joint ventures.
Secretary Mnuchin responded “Yes, that may be one of the most important aspects of the new legislation.”
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Background:
On May 9, 2018, Daines pressed Department of Defense secretary Jim Mattis on the importance of protecting American innovation from theft and forced technology transfers in China during a Senate Appropriations Subcommittee on Defense hearing.
Following the congressional delegation trip Daines led to China, Daines published a joint Fox News op-ed with Sens. Chuck Grassley (IA), Ron Johnson (WI) and David Perdue (GA) on both the threats and opportunities America faces when working with and competing against China.
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Contact: Marcie Kinzel, Breanna Deutsch, Julia Doyle