Abstract

This short Comment describes the most important changes to the Exon-Florio CFIUS framework introduced by the National Security Act of 2007 and evaluates the extent to which the updated legislation strikes a reasonable balance between national security concerns and promoting the inflow of foreign capital in the United States. The Comment provides a brief overview of the history of the Committee on Foreign Investments in the United States (CFIUS) and discusses the key criticisms that have been levied against the CFIUS review process. The recent amendments to the CFIUS framework are analyzed in light of several emerging realities in the markets for investment and regulation, including the increased visibility of sovereign wealth funds and the greater interplay between the regulatory frameworks of developed countries seeking to attract foreign investment.