Occasionally, on our blog, we allow ourselves to indulge in prognostication. Similarly, and also occasionally, we are wrong. Nevertheless, we hope to distinguish ourselves by our candor and admit our misses....more
1/19/2023
/ Artificial Intelligence ,
Batteries ,
Biotechnology ,
CFIUS ,
China ,
Critical Infrastructure Sectors ,
Executive Orders ,
Investment ,
Investment Controls ,
Semiconductors ,
Technology
On November 26, 2019, the U.S. Department of Commerce issued a proposed rule that could change how you procure IT goods and services.
The rule would allow the Commerce Department to review your company’s purchase of...more
12/19/2019
/ Comment Period ,
Critical Infrastructure Sectors ,
Foreign Adversaries ,
Goods or Services ,
Information and Communication Technology (ICT) ,
Information Technology ,
National Security ,
New Rules ,
Penalties ,
Public Comment ,
Secretary of Commerce ,
Technology Sector ,
U.S. Commerce Department
My VC Fund has U.S. and non-U.S. General Partners, will I need to file CFIUS declarations for every investment I want to make in tech, in infrastructure, or in a company with customers’ personal data?
This is a critical...more
11/13/2019
/ Board of Directors ,
CFIUS ,
Controlled Foreign Corporations ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Declaration ,
FIRRMA ,
Foreign Investment ,
Foreign Nationals ,
General Partner ,
Investment Funds ,
Investment Management ,
Investors ,
National Security ,
Personal Data ,
Proposed Rules ,
Technology Sector ,
Venture Capital
By now, you have skimmed through the proposed FIRRMA regulations issued on September 17 2019, and you have very likely read a dozen summaries of those regulations (with titles like “New Proposed CFIUS Regulations Published”...more
10/18/2019
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
FIRRMA ,
Foreign Governments ,
Foreign Investment ,
Foreign Nationals ,
Investors ,
NATO ,
Non-Controlling Interests ,
Proposed Regulation ,
Proposed Rules
What is CFIUS? The Committee on Foreign Investment in the United States, or CFIUS, is an interagency committee chaired by the Secretary of the Treasury which is authorized to review and approve transactions involving foreign...more
9/26/2019
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
FIRRMA ,
Foreign Investment ,
Global Dealmaking ,
National Security ,
Proposed Regulation ,
Proposed Rules ,
Public Comment ,
Real Estate Transactions ,
U.S. Treasury
Key Takeaways:
• Technology Infrastructure and Data. CFIUS will focus its review on investments in critical Technology, critical Infrastructure, and sensitive personal Data (“TID Businesses”).
• Critical technologies is...more
9/23/2019
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Defense Production Act ,
Exon-Florio ,
Export Control Reform Act (ECRA) ,
FIRRMA ,
Foreign Investment ,
Interstate Commerce ,
National Security ,
Proposed Regulation ,
Proposed Rules ,
Real Estate Transactions
The Committee on Foreign Investment in the United States, CFIUS, is the U.S. government agency that conducts national security reviews of foreign direct investment in the United States. The CFIUS rules have been significantly...more
4/10/2019
/ CFIUS ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
EU ,
European Commission ,
Foreign Acquisitions ,
Foreign Direct Investment ,
Foreign Investment ,
Member State ,
National Security ,
Norway ,
UK
• Emerging technology sectors are being reviewed now for new export controls that could take effect in 2019 (list below).
• You may submit comments on the criteria the U.S. government will use to determine what technologies...more
12/11/2018
/ Comment Period ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Emerging Technology Companies ,
Export Controls ,
Exports ,
Foreign Nationals ,
National Security ,
Proposed Rules ,
Public Comment ,
Technology Sector
Key Takeaways:
• Emerging technology sectors will soon be subject to new export controls.
• Affected sectors include biotech, computing, artificial intelligence, positioning and navigation, data analytics, additive...more
11/19/2018
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
Comment Period ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Emerging Technology Companies ,
Export Administration Regulations (EAR) ,
Export Controls ,
Exports ,
FIRRMA ,
Foreign Acquisitions ,
Foreign Investment ,
Foreign Nationals ,
Mergers ,
National Security ,
Public Comment ,
Technology Sector ,
U.S. Commerce Department
• On October 10, 2018, the Committee on Foreign Investment in the United States put into effect the first mandatory filing requirement ever imposed by CFIUS. The Department of Treasury’s summary of the Pilot Program is...more
This week, you have likely heard about FIRRMA, the Foreign Investment Risk Review Modernization Act, the law that will expand CFIUS. We have written about a number of aspects of the new law as it was being made, including the...more
8/20/2018
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Filing Fees ,
Filing Requirements ,
FIRRMA ,
Foreign Acquisitions ,
Foreign Direct Investment ,
Foreign Investment ,
Information Sharing ,
National Security ,
New Legislation ,
Personal Data ,
Reporting Requirements ,
Trump Administration
All this past week, you have been hearing about FIRRMA, the new legislation that will increase the powers of the Committee on Foreign Investment in the United States that is expected to be signed into law in the coming weeks....more
The U.S. House of Representatives passed a bill on Tuesday, July 10, expanding and increasing the powers of the Committee on Foreign Investment in the United States (CFIUS). The bill is called the Foreign Investment Risk...more
7/16/2018
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Exemptions ,
Export Controls ,
Exports ,
FIRRMA ,
Foreign Investment ,
National Security ,
NATO ,
Pending Legislation ,
Technology Sector ,
Trump Administration
Chinese investment in the United States plummeted in 2017 and is likely to continue to fall. According to the Wall Street Journal, Chinese foreign direct investment in the United States declined 36% last year, from $46.2...more
CFIUS is expanding its reach. Where the Committee on Foreign Investment in the United States has generally scrutinized foreign acquisition of U.S. “critical infrastructure,” it has now signaled that it may look closely at any...more
On September 13, 2017, the EU Commission released a proposed regulation establishing a framework for screening Foreign Direct Investments (FDI) in Europe. Several EU Member States have already implemented national mechanisms...more
12/14/2017
/ CFIUS ,
Critical Infrastructure Sectors ,
EU ,
EUMR ,
European Commission ,
Foreign Direct Investment ,
Member State ,
National Security ,
Proposed Regulation ,
Screening Procedures ,
Technology Sector
CFIUS has the power to unwind your M&A deal. That power will likely expand. That is the headline.
The Committee on Foreign Investment in the United States (CFIUS) reviews acquisitions by foreign parties of “critical...more