Oracle Corp is supporting bipartisan US legislation that aims to toughen foreign investment rules amid increasing concern over Chinese efforts to buy American high-tech firms, Reuters reports.
The software maker wrote a letter to some lawmakers who introduced the legislation that it welcomes the bills in launched in the US Senate and the House of Representatives, the report said.
“We appreciate the language is narrowly tailored to focus on specific national security concerns, distinguishing between investments that are financially motivated and investments that are strategically motivated, such as improving foreign military capabilities or other strategic objectives,” Kenneth Glueck, a senior vice president at Oracle, was quoted as saying in the letter.
He was referring to bills that would expand the power of the Committee on Foreign Investment in the United States (CFIUS), allowing it to review smaller investments and add new national security factors, such as exposure of Americans’ Social Security numbers, for CFIUS to consider.
The bills were introduced last week Republican Senators John Cornyn and Richard Burr and Democratic Senator Dianne Feinstein.
The House bill was introduced by Republican Representative Robert Pittenger, also with bipartisan co-sponsors.
IBM Corp opposed the bills, arguing that they would bog down an already busy panel with routine transactions.
Cornyn has said he hopes for a Senate hearing on the bill before the end of the year and committee action soon after.
CFIUS reviews proposed transactions for national security concerns. The inter-agency panel can recommend that a transaction be prohibited, but only the US president can issue an order to stop or suspend a deal.
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