Legal Application and Institutional Improvement of CFIUS Review Mechanisms in Cross-Border Lithium Battery Investments: A Framework Analysis for Balancing National Security and Investment Facilitation
Year: 2025
Type: article
Abstract: This study examines the legal application and institutional improvement requirements for Committee on Foreign Investment in the United States (CFIUS) review mechanisms in cross-border lithium battery investments, addressing the critical balance between national security protection and investment facilitation. Through comprehensive analysis of statutory frameworks under the Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018 and the Foreign Investment and National Security Act (FINSA) of 2007, this research identifies systematic challenges in current regulatory approaches to critical energy technology oversight. The investigation analyzes CFIUS case precedents, enforcement actions, and regulatory decisions from 2019-2024, revealing significant jurisdictional ambiguities in emerging technology classifications, procedural inefficiencies impacting investment climate predictability, and enforcement gaps in post-transaction monitoring. Based on examination of CFIUS Annual Reports to Congress, Congressional Research Service (CRS) analyses, and Government Accountability Office (GAO) assessments, this study demonstrates that existing CFIUS frameworks encounter substantial limitations when addressing sophisticated lithium battery technologies, with regulatory uncertainty creating delays averaging 156-203 days for critical technology transactions. The study proposes comprehensive institutional reforms incorporating risk-proportionate assessment protocols, enhanced legal clarity in technology classifications, and streamlined review processes grounded in established CFIUS jurisprudence. Recommendations emphasize implementation of tiered security screening mechanisms aligned with FIRRMA's mandatory filing requirements, conditional approval frameworks consistent with National Defense Authorization Act provisions, and international cooperation strategies for regulatory harmonization. The research contributes theoretical insights into balancing national security imperatives with investment facilitation objectives, providing practical frameworks for modernizing foreign investment review processes in critical technology sectors. These findings inform regulatory policy development and establish foundations for enhanced cross-border investment governance in strategic energy technologies.
Author: Jing Li
Institution: New York University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4412371487