As the world economy grows increasingly interdependent, an interesting public policy question is developing about whether foreign investment in U.S. companies is a threat to national security.

Indeed, the proposed purchase of 3Com Corporation by Bain Capital, which includes China's Huawei Technologies Co. Ltd. acquiring a minority share in the American company, is the focus of such a debate in the halls of Congress, despite ongoing review by the independent Committee on Foreign Investment in the United States (CFIUS).

On October 15, Senator Kit Bond (R-MO) gave a speech on the issue at the Heritage Foundation, arguing that while it is natural and legitimate for Americans to remain vigilant regarding this type of transaction, the independent CFIUS is the proper mechanism to examine these sensitive issues.  

To read Senator Bond's remarks, click here (.pdf).