On August 9, 2023, President Biden issued an Executive Order (E.O.) ordering the issuance of outbound investment restrictions. This E.O. comes after nearly a year of anticipation (as we have documented on several occasions...more
8/14/2023
/ Artificial Intelligence ,
Biden Administration ,
CFIUS ,
Executive Orders ,
Foreign Direct Investment ,
Foreign Investment ,
Investment ,
National Security ,
Outbound Transactions ,
Semiconductors ,
Supply Chain ,
Technology Sector ,
U.S. Commerce Department ,
U.S. Treasury
On August 9, 2023, President Biden issued an Executive Order (E.O.) ordering the issuance of outbound investment restrictions. This E.O. comes after nearly a year of anticipation (as we have documented on several occasions...more
8/11/2023
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Artificial Intelligence ,
Biden Administration ,
CFIUS ,
China ,
Cybersecurity ,
Executive Orders ,
Foreign Direct Investment ,
Foreign Investment ,
National Security ,
Popular ,
Semiconductors ,
Supply Chain ,
Technology Sector
On September 15, President Biden signed the first-ever Executive Order (E.O.) on CFIUS – the Committee on Foreign Investment in the United States. While the E.O. does not substantively change CFIUS’s jurisdiction or the legal...more
So you’d like to build a new fabrication facility in China, or just add some capabilities to your existing plant? Well, the U.S. Government may want to have a look at that transaction—and may soon have the authority to stop...more
This past month, the U.S. Senate debated a provision in the Innovation and Competition Act that would require the Committee on Foreign Investment in the United States (CFIUS) to review any proposed gifts and contracts of $1...more
6/15/2021
/ CFIUS ,
China ,
Export Controls ,
Foreign Investment ,
Higher Education Act ,
Information Technology ,
Information Technology Outsourcing ,
National Security ,
Research and Development ,
Technology ,
Universities
A June 3, 2021 Executive Order (see our post here) designated 59 Chinese companies in which U.S. companies are prohibited from buying or selling securities. According to the Biden administration, those companies “threaten the...more
6/11/2021
/ Biden Administration ,
China ,
Compliance ,
Executive Orders ,
Foreign Investment ,
Geopolitical Risks ,
Investment Funds ,
Manufacturers ,
Securities ,
Startups ,
Supply Chain
On November 11, 2020, the UK government proposed a much anticipated National Security and Investment Bill (the Bill or proposed Regulation) before Parliament.
The Bill is the result of a series of government papers and legal...more
On October 15, 2020, CFIUS will officially tie mandatory filings to U.S. export control regimes, including the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). While that...more
On May 21, 2020, a proposed rule change brought the threat of a mandatory CFIUS filing to investments across all U.S. industries. The U.S. Department of Treasury proposed a rule that removes a restriction formerly in the...more
6/1/2020
/ CFIUS ,
Exceptions ,
Filing Requirements ,
FIRRMA ,
Foreign Investment ,
licences ,
NAICS ,
Pilot Programs ,
Private Equity ,
Proposed Regulation ,
Proposed Rules ,
Trump Administration ,
U.S. Treasury
Robotic exoskeletons may augment human strength, endurance, and mobility. The latest CFIUS action has all the makings of a Terminator movie.
This month, the Committee on Foreign Investment in the United States (“CFIUS”)...more
The pandemic that has put our world a bit sideways has, as you might expect, set back our publication date. We should have paper copies of the (much anticipated) CFIUS Book: Second Edition available by mid-May 2020. However,...more
The most pressing question around the new FIRRMA regulations is “Will my transaction be covered?” To provide a bit of guidance on that point, we present an illustration from our upcoming Second Edition of The CFIUS Book due...more
1/29/2020
/ Australia ,
Canada ,
CFIUS ,
Covered Transactions ,
Cross-Border Transactions ,
Encryption ,
Exceptions ,
Exports ,
Federal Pilot Programs ,
Filing Requirements ,
Final Rules ,
FIRRMA ,
Foreign Investment ,
Investment Funds ,
National Security ,
Private Equity ,
Proposed Regulation ,
Real Estate Transactions ,
Software ,
Technology ,
Technology Sector ,
UK
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
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
I spent last week in Seoul talking to clients about the latest changes to U.S. trade and sanctions policy (as South Korea is one of Iran’s largest trading partners, it is understandable that some concerns have arisen there in...more
6/8/2018
/ Business Opportunities ,
China ,
Cross-Border Transactions ,
Economic Sanctions ,
Foreign Investment ,
Foreign Relations ,
Infrastructure ,
North Korea ,
SDN List ,
South Korea ,
Trade Policy ,
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 takes an unprecedented step to fend off a potential foreign acquisition
• The threat that China will eclipse the U.S. in telecommunications infrastructure and technology is central to U.S. national security
•...more
3/9/2018
/ 5G Network ,
Advisory Opinions ,
Board of Directors ,
Broadcom ,
CFIUS ,
China ,
Corporate Counsel ,
Cross-Border Transactions ,
Foreign Acquisitions ,
Foreign Investment ,
Hostile Takeover ,
Infrastructure ,
Mergers ,
National Security ,
Qualcomm ,
Smartphones ,
Stockholders' Meetings ,
Takeover Bids ,
Technology Sector ,
Telecommunications ,
US Trade Policies