Congresswoman Kim highlights California's foreign investment impact and CFIUS efficiency improvements

The U.S. House Committee on Financial Services convened on July 13, 2025, to discuss critical aspects of U.S. policy on investment security, particularly focusing on the Committee on Foreign Investment in the United States (CFIUS). The meeting highlighted the importance of balancing national security with the facilitation of foreign direct investment (FDI), which plays a significant role in the U.S. economy.

During the session, Representative Kim emphasized the vital role of FDI in maintaining employment and economic strength in the U.S., noting that California leads the nation in related employment. She underscored the necessity of protecting American investments abroad while ensuring that foreign investments do not compromise national security.

Joseph Love, a witness at the hearing, detailed the CFIUS review process, explaining that it begins when parties involved in a cross-border transaction assess whether their deal falls under CFIUS jurisdiction. He outlined the information required from both foreign investors and U.S. businesses, which includes details about ownership, business operations, and potential national security concerns.

The discussion also touched on the known investor pilot program, which aims to streamline the CFIUS review process for frequent filers. Witness Stanford noted that this initiative could enhance efficiency by allowing CFIUS to focus on higher-risk transactions while expediting reviews for established investors. He expressed concern that previous political influences had undermined CFIUS's mission, potentially making the U.S. less competitive in attracting foreign investments.

The meeting concluded with a call for continued improvements to the CFIUS process to ensure it effectively safeguards national security while promoting a favorable environment for foreign investment. The committee members agreed on the importance of maintaining a balanced approach to protect both U.S. interests and economic growth.