The outbound investment program will affect U.S. persons considering certain investments or other transactions involving China and specific industry sectors (e.g., semiconductors, artificial intelligence and quantum...more
7/16/2024
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Artificial Intelligence ,
China ,
Covered Entities ,
Covered Transactions ,
Foreign Investment ,
Investment ,
Limited Partnerships ,
National Security ,
Notice of Proposed Rulemaking (NOPR) ,
Prohibited Transactions ,
Proposed Regulation ,
U.S. Treasury
On March 29, 2024, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued an interim final rule (“2024 IFR”) clarifying and correcting its October 2023 interim final rules on advanced...more
4/9/2024
/ Bureau of Industry and Security (BIS) ,
China ,
ECCNs ,
Export Administration Regulations (EAR) ,
Export Controls ,
Exports ,
Interim Final Rules (IFR) ,
Manufacturers ,
National Security ,
Semiconductors ,
Supply Chain
The BIOSECURE Act would prohibit federal agencies from contracting with, extending loans to, or awarding grants to, any company with existing or pending agreements with identified biotechnology companies. This limits funding...more
FinCEN is focused on customer due diligence, and both the 2024 Investment Adviser Risk Assessment and proposed rule indicate that investment advisers will be expected to assess customer identity, business model, and sources...more
3/15/2024
/ AML/CFT ,
Anti-Corruption ,
Anti-Money Laundering ,
Bank Secrecy Act ,
Beneficial Owner ,
CDD ,
CFIUS ,
China ,
Customer Identification Program (CIP) ,
Due Diligence ,
Exempt Reporting Advisers (ERAs) ,
Financial Institutions ,
FinCEN ,
Infrastructure ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Investors ,
No-Action Letters ,
Popular ,
Private Funds ,
Proposed Rules ,
Risk Assessment ,
Russia ,
Securities and Exchange Commission (SEC) ,
SIFMA ,
Suspicious Activity Reports (SARs) ,
Technology Sector
This past year saw a continued trend in building supply chain resiliency, as this topic has grown increasingly important following Covid-19, the conflict in Ukraine, shifting landscape on tariffs, forced labor concerns and a...more
2/23/2024
/ China ,
Customs and Border Protection ,
Export Controls ,
Forced Labor ,
Foreign Adversaries ,
Imports ,
National Security ,
Section 301 ,
Semiconductors ,
Supply Chain ,
Tariffs ,
Uyghur Forced Labor Prevention Act (UFLPA)
During 2023 both Congress and the Biden Administration repeatedly expressed the need to secure critical supply chains, particularly batteries that rely heavily on lithium and critical minerals sourced from China. Concerns...more
1/31/2024
/ Batteries ,
China ,
Entity List ,
Exports ,
Forced Labor ,
Human Rights ,
Imports ,
Inflation Reduction Act (IRA) ,
National Security ,
Supply Chain ,
Tax Credits ,
Uyghur Forced Labor Prevention Act (UFLPA)
Secretary Raimondo announced that the United States will not be compromising with China on “matters of national security” in response to calls to reconsider the recent Executive Order directing the Department of Treasury to...more
9/22/2023
/ Artificial Intelligence ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
China ,
Executive Orders ,
Export Controls ,
Foreign Direct Investment ,
Foreign Investment ,
National Security ,
NDAA ,
Russia ,
Semiconductors ,
U.S. Treasury
If implemented by the U.S. government, the restrictions would regulate certain outbound investments by U.S. persons in countries of concern such as China.
The regulations may be established by an executive order,...more
7/27/2023
/ Artificial Intelligence ,
Biden Administration ,
CFIUS ,
China ,
Corporate Counsel ,
Executive Orders ,
FIRRMA ,
Foreign Investment ,
International Trade ,
Investment ,
NDAA ,
Outbound Transactions ,
Semiconductors
On November 2, 2022, Assistant Secretary of the U.S. Department of Commerce Thea Rozman Kendler answered questions on the Bureau of Industry and Security’s (BIS) October 13 interim final rule (“the Rule”) regarding...more
On October 7, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an interim final rule (the “Rule”) imposing sweeping new export controls targeting certain advanced computing integrated...more
In passing the Anti-Foreign Sanctions Law, China creates the most wide-ranging legal tool to counter sanctions imposed by the U.S., the European Union and other foreign countries.
All entities and individuals (including...more
E.O. 14032 signals that the Biden Administration will continue to restrict U.S. investments into China’s defense and surveillance technology sectors.
The prior Administration’s November 2020 Executive Order (E.O.) 13959...more
Following the new Export Control Law of China that encourages all exporters to establish an internal compliance program, China’s Ministry of Commerce (MOFCOM) has published guidelines for the internal compliance programs of...more
5/13/2021
/ Audits ,
Bureau of Industry and Security (BIS) ,
China ,
Compliance ,
Contingency Plans ,
Enforcement Actions ,
Export Controls ,
MOFCOM ,
New Guidance ,
Policy Statement ,
Risk Assessment ,
Training
On December 21, the Bureau of Industry and Security (BIS) published a Military End User (MEU) list to further implement the military end user/end use (MEU) rule defined in Section 744.21 of the Export Administration...more
On November 12, 2020, President Trump issued an Executive Order (E.O.) prohibiting U.S. persons from engaging in any transaction (defined as a “purchase for value”) of publicly traded securities, or transacting in financial...more
The U.S. government has issued several rules aimed at excluding, and in some cases removing, Chinese-origin equipment from U.S. telecommunications networks. Most of these rules apply to U.S. government networks, but some...more
There are several legislative proposals pending in Congress targeting trade and investment involving China. If enacted, the proposals would prevent Chinese entities from acquiring certain U.S. technologies, prohibit U.S....more
Recent reports suggest that the Administration may declare an emergency under the International Emergency Economic Powers Act (IEEPA) to grant the Committee on Foreign Investment in the United States (CFIUS) authority to...more
“Dozens of Transactions Were Cleared” -
Contrary to popular belief, most China-U.S.deals are still getting done. Even the Trump Administration recognizes CFIUS should not close the door to investment from China. The...more
4/11/2018
/ CFIUS ,
China ,
Critical Infrastructure Sectors ,
Department of Defense (DOD) ,
Foreign Acquisitions ,
Foreign Investment ,
Mergers ,
National Security ,
Risk Assessment ,
Section 301 ,
Trade Relations ,
Trump Administration ,
USTR
No, the Committee on Foreign Investment in the United States has not put a halt to acquisitions of U.S. companies by China-based purchasers.
Three recently cleared transactions illustrate that CFIUS is not standing in the...more
2/13/2018
/ Acquisitions ,
CFIUS ,
China ,
Cross-Border Transactions ,
Foreign Acquisitions ,
Foreign Investment ,
Hong Kong Stock Exchange ,
Manufacturers ,
Mergers ,
National Security ,
Proposed Legislation ,
Publicly-Traded Companies ,
Risk Assessment ,
Subsidiaries ,
Trump Administration
On November 8, 2017, members of the U.S. House and Senate introduced companion legislation that would update the Committee on Foreign Investment in the U.S. (“CFIUS”) and the national security review process. The bill,...more
President Trump issued an Executive Order prohibiting the proposed acquisition of Lattice Semiconductor (Lattice) by a Chinese consortium known as Canyon Bridge. Lattice is a semiconductor company primarily manufacturing...more
Recent public reports indicate Senate Chuck Schumer (D-NY), the Senate Democratic Leader, has authored a letter to President Trump requesting the President order the Committee on Foreign Investment in the United States...more
The expanding influx of foreign investments in U.S. real estate has drawn the attention of three key U.S. Senators amid national security concerns. Senators Ron Wyden (D-OR), ranking member of the Senate Finance Committee;...more
As the Trump Administration continues to examine its trade relationship with China, legislators in Congress are looking to modernize the Committee on Foreign Investment in the United States (CFIUS) review process in order to...more