Covington’s Mark Plotkin Testifies Before USCC

Covington’s Mark Plotkin Testifies Before USCC

May 10, 2013

WASHINGTON, DC, May 10, 2013 — Covington & Burling partner Mark Plotkin testified before the Congressionally-chartered U.S.-China Economic and Security Review Commission on May 9 regarding the current state of national security laws and policies governing Chinese direct investment in the United States.

In his testimony, Mr. Plotkin explained that existing law is adequate to enable the Committee on Foreign Investment in the United States, or CFIUS, to consider investments originating from China, and that greater restrictions are unnecessary. He also observed that Chinese investment in the United States can bring substantial economic benefits without requiring that U.S. national security be compromised in any respect.

Mr. Plotkin encouraged the Commission to resist the temptation to recommend additional statutory mandates to the national security review process.

“It is the flexibility to review each transaction on a case-by-case basis that makes Committee on Foreign Investment in the United States effective,” Mr. Plotkin testified. “Instead, I encourage the Commission to consider how it can help empower CFIUS and our other institutions through additional resources.”

Mr. Plotkin’s complete testimony can be found here. Full details of the hearing can be found here.

The U.S.-China Economic and Security Review Commission was created by Congress to monitor and report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China.