Investigations into the national security risks from the foreign takeovers of American companies are on the rise according to a new report given to Congress. The Committee on Foreign Investment in the United States stated this week the number of international business takeovers investigated by the committee has increased 23 percent over the last few years.
The committee, whose role it is to monitor the national security risks from foreign businesses gaining significant or controlling shares of U.S. companies, reviewed 313 instances of foreign takeovers since 2008. In 2008, the committee investigated 15 percent of cases, however in 2010 that number increased to 38 percent. The committee also took action to prevent deals from going through. In 2010, it restricted or blocked nine transactions deemed dangerous to U.S. national security.
The majority of the companies come from technology fields such as software development and electronics manufacturing. This fact is not surprising. For the last quarter of a century, the U.S. has been able to maintain a strong global presence through enjoying a significant technological advantage over foreign militaries. However, in recent years this technological gap has been reduced as countries like China grow their domestic high tech sectors.
U.S. military technology once thought to be so advanced as to be largely immune is now threatened by the spread of technology and skillsets able to counter it. One only needs to look at North Korean successes at blocking the U.S. military’s global positions system and Iran’s recently successful hijacking of a classified drone to see the dangers of technological parity with foreign nations. As America’s military increasingly relies upon more advanced technologies to protect the nation’s security and global interests, it is likely that investigations against foreign influence of U.S. high-tech companies will continue to rise.
Mike Jones is a researcher, writer, and analyst on national and international security. He lives in the DC area.
