The Study On "Foreign Investment Risk Review Modernization Act" Of The United States

On August 13,2018,U.S President signed the John S.MC National Defense Authorization Act for Fiscal Year 2019,at the same time,the Foreign Investment Risk Review Modernization Act of 2018(FIRRMA)was passed as part of the Act.This bill updates and modifies the national security review system of foreign investment in the United States on a large scale.The provisions of the act impose stricter restrictions on the entry of foreign investors into the United States for mergers and acquisitions or investment activities.On November 10,2018,the Pilot Program of FIRRMA was officially implemented.The Pilot Program not only clearly stipulates the advance implementation of parts of FIRRMA,but also enriches the parts of FIRRMA.It is a transitional measure to implement FIRRMA,and it paved the way for CFIUS to push the FIRRMA rules into place.On September 17,2019,the U.S.Department of the Treasury enacted the Proposed Regulations Implementing FIRRMA.Through a series of consultation and modification,On January 17,2020,the Final Regulations Implementing FIRRMA was formally issued and came into effect on February 13,2020.This rule further refined and supplemented the FIRRMA.First of all,this paper gives a general overview of FIRRMA,including its legislative background,legislative process and legislative framework,which plays an important role in guiding FIRRMA’s further research.The following part mainly explains the changes and modifications brought about by the introduction of FIRRMA and its implementation regulations from the aspects of entity and procedure modification,and analyzes and evaluates the relevant empirical cases.At the end of the article,the article analyzes the current situation of Chinese enterprises’ investment in the United States and the impact of FIRRMA.