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
On August 8, 2018, the State Department announced that it had concluded that Russia was responsible for poisoning former double agent Sergei Skripal and his daughter Yulia using the nerve agent Novichok and that it had sent a...more
On August 6, 2018, the Treasury Department’s Office of Foreign Assets Control (OFAC) released a new Executive Order to implement the previously announced re-imposition of U.S. sanctions for Iran. ...more
House and Senate negotiators have agreed on proposed reforms to the Committee on Foreign Investment in the United States (CFIUS) foreign investment review process, which has been added as Title XVII of the FY2019 National...more
June 15, 2018 – U.S. proposes an additional 25 percent ad valorem duty on products from China (818 tariff categories) with an annual trade value of approximately $34 billion. The $34 billion action became effective on July 6,...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
Last week, the U.S. Senate overwhelmingly passed the 2019 National Defense Authorization Act, H.R. 5515 (NDAA). The Senate version contains several differences from the NDAA as passed by the House, and these discrepancies...more
Last week, the U.S. Senate overwhelmingly passed the 2019 National Defense Authorization Act, H.R. 5515 (NDAA). The Senate version contains several differences from the NDAA as passed by the House, and these discrepancies...more
Following President Trump’s direction in connection with the Section 301 investigation into China’s acts, policies and practices related to intellectual property, on June 15, 2018, the Office of U.S. Trade Representative...more
On May 23, 2018, as directed by President Trump, the Secretary of Commerce initiated a Section 232 investigation into whether imports of automobiles, including SUVs, vans, light trucks and automotive parts, threaten to impair...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
Today, President Trump announced his intention to withdraw the United States from the Joint Comprehensive Plan of Action (JCPOA) and to impose the “highest level of economic sanctions” on Iran. The Office of Foreign Assets...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
The Treasury Department has placed several prominent Russian individuals and companies on the Specially Designated Nationals and Blocked Persons lists (“SDN list”). Several of these parties are Russian billionaires previously...more
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
President Trump issued a memorandum (“Memorandum”) directing his Administration to take several actions related to the investigation by the Office of U.S. Trade Representative (“USTR”) into China’s acts, policies, and...more
Pursuant to President’s Trump’s March 8, 2018 proclamations issued under authority of Section 232 of the Trade Expansion Act of 1962, added customs tariffs on imports of a wide variety of steel and aluminum imports from all...more
On March 8, 2018, President Trump signed proclamations authorizing the imposition of a 25 percent customs duty on certain steel products and a 10 percent customs duty on certain aluminum products. The duties were imposed...more
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 January 12, 2018, President Trump issued a statement on the status of the Joint Comprehensive Plan of Action (“Iran nuclear deal”) and the Office of Foreign Assets Control designated 14 individuals and entities in...more
Further to our alert published on November 13, 2017 regarding whether acts, policies, and practices (“APPs”) of China related to transfer of technology, intellectual property, and innovation are actionable under Section...more
On November 22, 2017, Apple, Inc. (“Apple”) released a statement confirming reports that its major supplier in China, Foxconn Technology Group (“Foxconn”) has used illegal student labor to assemble the latest version of the...more
12/5/2017
/ Apple ,
China ,
Customs and Border Protection ,
Economic Sanctions ,
Forced Labor ,
Imports ,
iPhone ,
Manufacturers ,
North Korea ,
Supply Chain ,
Tariff Act of 1930 ,
Trade Facilitation and Trade Enforcement Act
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
Following President Trump’s trip to Asia, sanctions policies for North Korea continue to evolve. The U.S. government has strengthened sanctions through legislation and Presidential Executive Orders. Further, it is enforcing...more