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New momentum for bill limiting contracts with Chinese biotech cos.

New momentum for bill limiting contracts with Chinese biotech cos.

The BioSecure Act appears to be advancing, and may come up for a vote in the fall. The proposal would restrict government contracts with entities that use biotech equipment or services from Chinese “companies of concern.” Details, key provisions, potential “scope creep,” and more are inside.

Compliance reminder: Two weeks left to comment on outbound rule

Compliance reminder: Two weeks left to comment on outbound rule

Just a friendly reminder that comments on the draft regulations for the outbound investment security program are due on August 4. As most readers know, the rule would restrict U.S. investments in certain technologies in countries of concern, namely China. Details and instructions are inside.

Military sites added to the CFIUS jurisdiction list won’t be the last

Military sites added to the CFIUS jurisdiction list won’t be the last

As we mentioned in last week’s edition, the Treasury Department has proposed a new rule that would expand the number of military installations over which CFIUS has jurisdiction. This is the second expansion of the real estate provisions of FIRRMA in the last year, and it won’t be the last. Details inside.

Activist group sues CFIUS over a failure to respond to FOIA request

Activist group sues CFIUS over a failure to respond to FOIA request

A conservative activist group known for filing Freedom of Information Act requests and lawsuits has filed a FOIA lawsuit against Treasury seeking communications between CFIUS and the Agriculture Department. Details, insights, a list of other FOIA requests sent to CFIUS, and the lawsuit are inside.

Lawmakers want probe of Microsoft deal with Abu Dhabi AI firm G42

Lawmakers want probe of Microsoft deal with Abu Dhabi AI firm G42

Two Republican Congressmen have requested a classified briefing from the Biden administration regarding a partnership between Microsoft and G42, an artificial intelligence firm based in Abu Dhabi. Of concern: The company’s ties to the Chinese government, and to blacklisted companies there.

Legal challenges to FDI decisions: Why so few, and what’s the impact?

Legal challenges to FDI decisions: Why so few, and what’s the impact?

In the latest edition of our short video series, “Ten Minutes On,” we chat with Brian Reissaus, who until recently was Deputy Assistant Secretary for Investment Security Operations at Treasury. On tap? Legal challenges to FDI decisions (or lack thereof), including investor perspectives, trends and more.

Lawmakers want CFIUS review of Chinese ownership of grain facility

Lawmakers want CFIUS review of Chinese ownership of grain facility

Two U.S. Representatives from Illinois have written a letter to Treasury Secretary Janet Yellen asking that CFIUS review the acquisition of a grain terminal by one of China’s largest state-run food and agriculture companies. According to the letter, the firm now owns six locations across the U.S.

Treasury issues rule on outbound investment in countries of concern

Treasury issues rule on outbound investment in countries of concern

As we predicted last week, Treasury has unveiled its proposed rule on outbound investment. Described as a “narrow and targeted national security program,” the rule addresses outbound investments “that contribute capital as well as intangible benefits” to entities that pose a risk to national security.

Chinese greenfield investments in EU surge despite M&A slowdown

Chinese greenfield investments in EU surge despite M&A slowdown

According to a new report, Chinese investments in Europe dropped to the lowest levels since 2010, and the value of Chinese M&A fell 58% in 2023. China’s economic challenges and increased scrutiny of foreign investment into Europe certainly played a role. The outlier? Chinese greenfield investments.

Outbound rule has been submitted to OMB; heading to final stages?

Outbound rule has been submitted to OMB; heading to final stages?

According to publicly available data confirmed by industry experts, the Treasury Department’s outbound investment proposal has been filed with the Office and Management and Budget. That means the proposed rule is likely in its final stages, and could be published soon. More inside.

One year after Sequoia split China fund, who else has done the same?

One year after Sequoia split China fund, who else has done the same?

It’s hard to believe, but it’s been a year since Silicon Valley venture capital firm Sequoia announced that it was spinning out its Chinese investing unit into an independent company. At the time, experts said this could start a trend. So, was it? Details and list of firms that have made similar moves are inside.

Bill would have CFIUS tell Congress why certain deals were not reviewed

Bill would have CFIUS tell Congress why certain deals were not reviewed

Last week, three U.S. Representatives proposed a bill that would increase Congressional oversight of CFIUS, and would “help identify loopholes that fall outside the jurisdiction of CFIUS.” The bill would require CFIUS to notify Congress why a transaction was not reviewed. Details, context, impact inside.

DoJ won’t prosecute firm that self-reported; “new normal” or outlier?

DoJ won’t prosecute firm that self-reported; “new normal” or outlier?

As we covered over a year ago, the Department of Justice has placed a premium on voluntary self-disclosure. And just last month, the DoJ declined to prosecute a company, citing the firm’s “timely and voluntary self-disclosure.” But experts say this may be an outlier, not the “new normal.” Details inside.

Firm wins $20M Treasury contract to build IT systems for outbound

Firm wins $20M Treasury contract to build IT systems for outbound

The government contracting unit of Accenture has been awarded a $20 million contract to work on the CFIUS case management system and other “international affairs projects,” including the outbound investment program. The contract comes right on the heels of another we recently tracked.

New report quantifies risk of outbound investments in China

New report quantifies risk of outbound investments in China

A new report says that U.S. investment funds “generally avoid” sanctioned security issuers in China, but that they “struggle to steer fully clear” of them. At the same time, actively managed funds have relatively low exposure to sanctioned and blacklisted Chinese cos. Details, report inside.

Florida bans state pension fund investments in China; will divest

Florida bans state pension fund investments in China; will divest

As we covered back in 2022, the state of Florida has been analyzing the portfolios of the Florida Retirement System to determine how many investments the state has in Chinese companies. Now the state has taken action to divest from any Chinese-owned companies. Details, context inside.

Vast majority of readers expect final rule on outbound to drop in Q4

Vast majority of readers expect final rule on outbound to drop in Q4

Where is the final rule on outbound investment? We haven’t gotten a good answer, so we polled readers for the ETA. When asked when they thought the final rule would drop, the vast majority (88.3%) predicted that the rule would drop in Q4; most picked the month after the election. Details inside.

CFIUS awards $1.7M contract to firm for IT, financial mgmt. services

CFIUS awards $1.7M contract to firm for IT, financial mgmt. services

Last week, the Treasury Department’s office of the CIO awarded a CFIUS information technology contract to Hill Associates, a Rockville, Maryland-based IT infrastructure and service management firm that specializes in working with federal agencies. Details on the contract are inside.