CFIUS Regulation of Foreign Investments: Mandatory Declarations; Covered Transactions; Countries of Special Concern

Description

The Trump administration sought to curb Chinese investment in the U.S. and established roadblocks over which such investment must overcome. Foreign investment concerns were not limited to China. The FIRRMA was signed into law in August 2018, expanding the scope of national security reviews of foreign investments in the U.S. and making mandatory declarations for some foreign investments. Under the law, the government was given regulatory authority over future investment controls.

The Biden administration continues to define and set boundaries related to foreign investment in the U.S. In September 2022, President Biden issued an Executive Order (EO) on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States expressly directing CFIUS to prioritize certain national security risks when reviewing covered transactions. In August 2023, President Biden issued an additional EO, calling for the creation of a new regime to screen (and in some cases, prohibit) outbound US investments in certain Chinese advanced technology sectors. Further, in July 2023 the US Senate adopted two amendments to the National Defense Authorization Act (NDAA) that would update the CFIUS statute and regulations to require the President to block certain agriculture transactions involving Chinese, Russian, North Korean, and Iranian investors, and requiring US companies to report investments in Chinese, Korean, Russian, and Iranian companies involved in AI, semiconductors, and other high-tech products.

Counsel must understand the limitations on foreign investment and the CFIUS and related risks involved and be prepared to navigate through the CFIUS process and any forthcoming processes applicable to foreign inbound or outbound investment.

Listen as our authoritative panel examines the latest regulations and guidance on foreign investment. The panel will discuss investments from China and other countries of "special concern" and the CFIUS and related risks involved, as well as address the increasing CFIUS caseload.