TAKEAWAYS -
A transfer of control of a borrower or its business to non-U.S. lenders who exercise remedies under financing documents could trigger CFIUS issues.
CFIUS regulations adopted in February 2020 dramatically...more
On March 6, 2020, President Trump issued an Executive Order (“EO”) instructing the Chinese company Beijing Shiji Information Technology Co., Ltd. (“Shiji”) to divest its acquisition of StayNTouch, Inc., a U.S.-based software...more
The Committee on Foreign Investments in the United States (CFIUS) is an inter-agency committee designed to review foreign investments that raise national security concerns. While you may have seen CFIUS play a role in prior...more
While there is increasing scrutiny, transactions continue to be reviewed and cleared by CFIUS, even where a Chinese entity is involved.
Upcoming legislative changes will expand the definition of a “covered transaction”...more
Hundreds of American companies may have inadvertently become “foreign persons” for CFIUS purposes, at risk of being caught up in the Trump Administration’s restrictions on foreign investment.
Many people know that the...more
7/9/2018
/ Acquisitions ,
CFIUS ,
Corporate Counsel ,
Covered Transactions ,
Cross-Border Transactions ,
FINSA ,
Foreign Acquisitions ,
Foreign Investment ,
Foreign Persons ,
Joint Venture ,
Merger Controls ,
National Security ,
National Security Review Proceedings ,
Risk Mitigation
“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
Following U.S. Trade Representative’s Section 301 investigation, presidential order threatens tariff increases and restrictions on Chinese inbound investment.
Tariff rises of 25 percent proposed, including for aerospace,...more
3/26/2018
/ Antitrust Provisions ,
China ,
Foreign Acquisitions ,
Intellectual Property Protection ,
National Security ,
Section 301 ,
Tariffs ,
Technology Sector ,
Trump Administration ,
USTR ,
WTO
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