The report shows a decline in filings, new mitigation measures and conditions, and continued emphasis on monitoring and enforcement.
On July 23, 2024, the Committee on Foreign Investment in the United States (CFIUS)...more
The proposed regulations would implement President Biden’s Executive Order that restricts certain outbound investments from the US.
On June 21, 2024, the US Department of the Treasury (Treasury) issued a Notice of Proposed...more
7/2/2024
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Biden Administration ,
Bureau of Industry and Security (BIS) ,
China ,
Controlled Foreign Corporations ,
Covered Entities ,
Executive Orders ,
Foreign Investment ,
Foreign Policy ,
International Emergency Economic Powers Act (IEEPA) ,
Military End Use ,
National Security ,
Outbound Transactions ,
Popular ,
Prohibited Transactions ,
Proposed Regulation ,
Public Comment ,
SDN List ,
Technology Sector ,
U.S. Commerce Department ,
U.S. Treasury
The proposal signals a continued effort to expand CFIUS’s enforcement scope and update penalties.
On April 11, 2024, the US Department of the Treasury (Treasury) issued a Notice of Proposed Rulemaking (the Proposed Rule)...more
The new measures build on sweeping restrictions that the United States introduced in October 2022.
On October 17, 2023 — just over a year after introducing extensive regulations aimed at restricting parties in China from...more
10/31/2023
/ Bureau of Industry and Security (BIS) ,
China ,
Defense Sector ,
Entity List ,
Export Controls ,
Exports ,
Military End Use ,
National Security ,
Semiconductors ,
Technology Sector ,
U.S. Commerce Department
After publicly signaling support for an outbound investment screening mechanism in July 2022, the Biden Administration has issued a long-anticipated Executive Order to address certain investments by US persons in “countries...more
8/16/2023
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Biden Administration ,
China ,
Comment Period ,
Executive Orders ,
Foreign Investment ,
Hong Kong ,
International Emergency Economic Powers Act (IEEPA) ,
Macau ,
National Security ,
Outbound Acquisitions ,
Outbound Transactions ,
Prohibited Transactions ,
U.S. Treasury
The Report shows that CFIUS reviewed a record number of filings in 2022 and also required more mitigation as a condition of clearance.
On July 31, 2023, the Committee on Foreign Investment in the United States (CFIUS)...more
8/8/2023
/ CFIUS ,
China ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Enforcement ,
Foreign Acquisitions ,
Foreign Investment ,
Life Sciences ,
National Security ,
Singapore ,
United Arab Emirates (UAE)
Companies that promptly self-disclose and remediate potential violations of administrative or criminal law may significantly mitigate liability.
On July 26, 2023, the US Departments of Justice (DOJ), Commerce, and the...more
8/3/2023
/ Bureau of Industry and Security (BIS) ,
Compliance ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Authority ,
Export Controls ,
Exports ,
Joint Policy Statements ,
Joint Statements ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
Self-Reporting
The recent developments signal a renewed vigor to protect US national security.
This Client Alert highlights the following recent developments relating to national security investment reviews conducted by the Committee on...more
The joint Strike Force will focus on shielding advanced US technology from nation-state adversaries and on prosecuting export controls violations.
On February 16, 2023, the US Departments of Justice and Commerce announced...more
While the Guidelines are not legally binding, they signal CFIUS’s clear intent to take an active approach to compliance and enforcement.
On October 20, 2022, the US Department of the Treasury, as Chair of the Committee on...more
President Biden sends a message to foreign investors and the business community that CFIUS will closely scrutinize transactions presenting certain risk factors.
On September 15, 2022, President Biden issued an Executive...more
9/27/2022
/ Biden Administration ,
CFIUS ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Cybersecurity ,
Executive Orders ,
Foreign Investment ,
National Security ,
Personal Data ,
Risk Mitigation ,
Supply Chain ,
Technology Sector
The report reflects CFIUS’ work during the first full year since the Foreign Investment Risk Review Modernization Act implementing regulations took effect.
On August 2, 2022, the Committee on Foreign Investment in the...more
If enacted, the bill would establish an interagency committee in the US to review certain outbound investment and other activity affecting supply chain security, domestic production, and manufacturing capacities.
Key...more
Supply chain, end use, and human rights–related sanctions, export controls, and Entity List designations target public and private entities in China.
Human rights–related designations -
The US government has...more
CFIUS continued to have a busy year in 2018, and CFIUS reveals first available data about the declaration process under the new Pilot Program.
On May 16, 2020, the Committee on Foreign Investment in the United States...more
Under the final regulations, CFIUS filings for certain transactions will be required, and CFIUS will have broader jurisdiction to review certain foreign investments.
On January 13, 2020, the US Treasury Department published...more
1/22/2020
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Australia ,
Bureau of Industry and Security (BIS) ,
Canada ,
CFIUS ,
Corporate Counsel ,
Critical Infrastructure Sectors ,
Federal Pilot Programs ,
Final Rules ,
FIRRMA ,
Foreign Investment ,
Jurisdiction ,
NAICS ,
National Security ,
Private Equity ,
Real Estate Transactions ,
U.S. Commerce Department ,
UK
The number of CFIUS notices filed is growing, more cases are extending into an investigation phase, and instances of pulling and refiling CFIUS notices are increasing.
On November 22, 2019, the Committee on Foreign...more
11/27/2019
/ Acquisitions ,
Annual Reports ,
CFIUS ,
China ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Federal Pilot Programs ,
FIRRMA ,
Foreign Investment ,
Investors ,
National Security
CFIUS has offered a one-month comment period for proposed rulemaking to implement provisions of CFIUS legislation passed in August 2018.
More than a year ago, in August 2018, US President Donald Trump signed the Foreign...more
9/27/2019
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Export Controls ,
Federal Pilot Programs ,
FIRRMA ,
Foreign Investment ,
National Security ,
Real Estate Transactions ,
U.S. Treasury
Program requires parties to submit to CFIUS notice of certain foreign investments in US businesses involved in specified critical technologies at least 45 days prior to closing.
Key Points:
..The US Treasury Department...more
10/18/2018
/ CFIUS ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Export Controls ,
Federal Pilot Programs ,
Filing Requirements ,
FIRRMA ,
Foreign Acquisitions ,
Foreign Investment ,
National Security
New law expands CFIUS’ jurisdiction and brings important procedural changes to foreign direct investment review.
Key Points:
..The new legislation extends CFIUS’ jurisdiction to cover non-controlling investments in the...more
8/14/2018
/ CFIUS ,
China ,
Covered Transactions ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Emerging Technology Companies ,
Export Controls ,
FIRRMA ,
Foreign Investment ,
National Security ,
NDAA ,
Trump Administration ,
U.S. Commerce Department
New Legislation to Reform the Committee on Foreign Investment in the United States Remains a Strong Possibility
Key Points:
..Reform legislation sponsors appear willing to address some concerns with the original...more
The proposed Foreign Investment Risk Review Modernization Act would bring substantial changes to CFIUS review.
Key Points:
..FIRRMA could speed review of certain transactions.
..It would provide for increased...more
Calendar Year 2015 CFIUS Report reflects review of transactions for national security risks is generally taking longer, with Chinese investors leading all others.
The Committee on Foreign Investment in the United States...more
FY2014 CFIUS Report reflects significant increase in the number of transactions reviewed for national security risks, with Chinese investors continuing to lead the pack.
The Committee on Foreign Investment in the United...more