What is foreign ownership, control and influence (FOCI)?

Foreign ownership, influence, and control (FOCI) in the national security setting refers to situations where a foreign organization, government or person has a significant ownership interest in the organization and the ability to influence decisions or contractual relationships with a U.S. company.  An organization with FOCI concerns may create a security risk that could compromise U.S. national security, e.g., a Chinese company may gain access to For sensitive technologies or information that could be used to gain a competitive advantage or engage in activities that comprise the United States' national security interests. The government has laws and regulations to review and regulate foreign investment in U.S. companies and assets critical to national security.  One government organization that reviews these issues is the Committee on Foreign Investment in the United States (CFIUS) which reviews foreign investment to determine whether such investment could harm national security.  FOCI issues are normally addressed through contract provisions, such as restrictions on the transfer of sensitive information or technology to foreign entities.