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Overview

The United States has long favoured foreign investment and, historically, the US government has imposed few restrictions on foreign investment inflows.2 Skepticism of investment from China continues to be a notable – and bipartisan – exception to this general policy of openness to foreign investment.3 Such investment is subject to review and remedial action on national security grounds by the Committee on Foreign Investment in the United States (CFIUS). CFIUS's most recent piece of authorising legislation is the Foreign Investment Risk Review Modernisation Act of 2018 (FIRRMA). While notifying a transaction to CFIUS remains voluntary in most circumstances, FIRRMA has created mandatory filing requirements for transactions involving certain types of US businesses and foreign investors. In addition to this general national security screening regime, the United States has some sector-specific limitations and review procedures that govern foreign investment in regulated industries.