Menendez: Foreign Government Investments In US Firms Deserves Close Watch

Menendez: Foreign Government Investments In US Firms Deserves Close Watch

Banking Committee member led fight against Dubai Ports deal in 2006

Washington - Various recent news reports have cited an increase in foreign investment in U.S. firms due to a weak American dollar, including a Washington Post report today specifically focused on Chinese investment. Much of this investment comes from sovereign wealth funds, which are backed, at least in part, by foreign governments. The most notorious foreign government investment was Dubai Ports World's deal in 2006 to acquire commercial operations at major U.S. seaports - a deal that was ultimately scuttled by the U.S. government after sharp Congressional and public criticism.

Senator Bob Menendez (D-NJ), a Banking Committee member who led the effort against the Dubai Ports deal, today released the following statement on foreign investment:

"Foreign investment in American companies, when responsible, can have the potential to contribute to our economy and create jobs. There is rightful concern, however, over the influx of investments made by foreign governments, particularly when those investments involve critical infrastructure or other major institutions that could impact the security or stability of our nation. With a weakening dollar and an ever-globalizing economy, we are sure to see an rising number of these deals, and they require close monitoring and close scrutiny. I find it increasingly difficult to believe that foreign governments like China pump in billions of dollars into U.S. financial institutions but don't have a desire to have a say over their investments. I am glad that Chairman Dodd has listed this as one of the priority issues for the Banking Committee this year, and I look forward to further examining this in hearings."