Clifford Chance

FIRRMA: Addressing the 'Weaponization' of Cross-Border Investment through CFIUS Reform?

7 February 2018

In response to increased foreign investment in potentially sensitive sectors such as artificial intelligence, robotics, autonomous vehicles and cyber, particularly from China, the U.S. Congress is considering legislation to update the rules governing foreign investment in the United States. The "Foreign Investment Risk Review Modernization Act of 2017" (FIRRMA) as currently drafted would expand the U.S. government's review of such transactions by, among other things, covering non-controlling investments, creating mandatory filing requirements for investors with government ownership, and applying entirely new controls on technical collaboration between U.S. and non-U.S. companies. If enacted, these changes could have broad implications for both overseas investors looking to participate in the U.S. economy and U.S. technology companies seeking access to opportunities outside the United States.

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