The National Security of Inbound & Outbound Investment: Reforming CFIUS and FOCI

This Note examines the evolution and contemporary significance of regulatory frameworks guiding the involvement of private corporations in the U.S. national security regime and the regime’s regulation of inbound and outbound investments as they pertain to national security interests. This Note focuses primarily on the Committee on Foreign Investment in the United States (CFIUS) and Foreign Ownership Control or Influence (FOCI) as regulatory mechanisms. Originating from the Cold War and adapted to post-9/11 security concerns, the scope of national security has widened from the traditional defense and intelligence functions to a more all-encompassing interest, including economic policy and the actions of domestic corporations. Even though the national security regime has drawn criticism as being against the principles of the free market, the role played by CFIUS and FOCI underscores the need for national security protections in the face of economic globalization and the multinationalism of corporations. This Note advocates for a unified regulatory approach, bringing the functions of CFIUS and FOCI together to protect against foreign exploitation of critical industries. A reformed and integrated national security framework is crucial for maintaining U.S. technological and military superiority, ensuring strategic autonomy, and fostering innovation within a complex global landscape.