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USCC would expand CFIUS powers, assess impact of new controls, more
In its latest report to Congress, the U.S.-China Economic and Security Review Commission issued a flurry of recommendations, including expanding the authority of CFIUS to review transactions that could support “foreign acquisition of capabilities to attain technological self-sufficiency.” Details inside.
UK government already looking for national security regime feedback
The National Security and Investment Act hasn’t even been in force for two full years, but the UK government is already seeking feedback from the business community about the way investments are being screened for national security. Details on the “Call for Evidence” is inside.
Five things you need to know if France strengthens its FDI regime
Last week, reports emerged that France would strengthen its foreign investment rules. In addition to lowering the scrutiny threshold permanently, France is also expected to expand the scope of investments and business activities subject to reviews. Details and action items inside.
First-ever list of CFIUS third-party monitors and third-party auditors
As a service to our readers, we’re publishing a first-ever list of third-party monitors and third-party auditors. The list includes each firm’s specialties, the number of transactions or mitigation agreements for which they have served as TPM or TPA, relevant China and cyber expertise, and more.
Ex-CFIUS staffer discusses what’s happening in TPM and TPA markets
We sit down with Jesse Sucher, who was previously Deputy Director of Monitoring and Enforcement at CFIUS. A Senior Advisor to Paul Rosen until a few weeks ago, Sucher has joined a firm that does third-party monitoring and auditing of CFIUS transactions. Sucher’s observations inside.
China Select Committee wants more broad approach to outbound regime
Leaders of The Select Committee on the Chinese Communist Party have offered Treasury Secretary Janet Yellen implementation recommendations on the outbound Executive Order. Experts say it represents a broader or “maximalist” approach to regulating outbound investment. Details inside.
Reissaus and Sucher depart CFIUS; what do the high-profile exits mean?
Though rumored for over a month, we finally got confirmation that Deputy Assistant Secretary for Investment Security Operations Brian Reissaus has left the Treasury Department, as has Senior Advisor and former Deputy Director for Monitoring and Enforcement Jesse Sucher.
Proposed bill would force annual update of gov’t facilities for CFIUS
Last week, six Republican U.S. Senators introduced legislation that would require CFIUS member agencies to conduct annual reviews of the military, intelligence, and national laboratory facilities that should be considered “sensitive sites” for national security purposes. Details, context, bill inside.
Understanding changes in FOCI scrutiny, mitigation, enforcement
This week, we do a deep dive on foreign ownership, control and influence. According to Chris Griner, who chairs the national security and CFIUS practice groups at Stroock, invalidation of security clearances is the new “tool of choice” when companies are found out of compliance.
Agricultural company is forced to sell Arkansas land over Chinese ties
This may be a first. Switzerland-based agriculture company Syngenta, which is a subsidiary of the Chinese state-owned China National Chemical Corporation, is being forced to give up its land holdings in Arkansas. Details and context on state-wide foreign investment regulations are inside.
Report on screening mechanisms: Restrictive regimes still attractive
A new 50-page research report from the Bank of France may be one of the first to measure the restrictiveness of foreign investment regimes. The report also looks at economic impact; some of the most restrictive countries still remain the most attractive to foreign investors. Details inside.
Bill would (again) force CFIUS to review China greenfield investments
In the wake of Fufeng and Gotion, greenfield investments have been top-of-mind. We discussed the topic last week (related to cryptomining facilities) and now a U.S. Congressman wants CFIUS to review all Chinese greenfield investments. It’s not the first time. Details inside.
New export controls placed on AI chips, manufacturing in China
Last week, the Bureau of Industry and Security at the U.S. Commerce Department imposed export controls on additional types of semiconductor manufacturing equipment. The package of new rules reinforces restrictions that were announced one year ago. Details, the rules, and context inside.
Ex-CFIUS member: The Committee should overhaul, enhance its reports
CFIUS’ annual reports to Congress are eagerly anticipated by stakeholders. But Berkeley Research Group managing director Harry Broadman says the reports provide “scant economically meaningful information” about CFIUS’ actions. Broadman’s thoughts on improving those reports are inside.
Is CFIUS reviewing cryptomining facilities owned by Chinese entities?
In case you missed it, the New York Times wrote an interesting piece on the national security implications of Chinese cryptomining facilities in the U.S., particularly near military facilities. This is not the first time the risk has been flagged, and it brings up interesting jurisdictional questions.
Dramatic expansion of enforcement at DoJ; will extend to CFIUS cases
Last week, Deputy AG Lisa Monaco said that the DoJ has seen a “dramatic expansion” of corporate enforcement efforts in the national security realm. The new policies will be applied globally, including to “violations of CFIUS mitigation agreements or orders.” Details, new Safe Harbor policy, inside.
Agencies continue to hire for CFIUS experts; a look at latest positions
You can tell a lot by prowling around the job boards, exploring which agencies and third-party monitors are hiring CFIUS experts, and why. It takes some sleuthing, as most government agencies use contractors to fill their open positions. We look at who’s hiring national security experts, and why.
Senators question whether foreign governments are skirting CFIUS
The ranking members of three high-profile Senate finance and budget committees have sent an oversight inquiry to U.S. Treasury Secretary Janet Yellen that raised concerns about how foreign governments could be skirting the CFIUS review process. Details and a copy of the letter are inside.
City passes law on national security review of RE deals; “one of the first”?
As we’ve covered extensively, several U.S. states have taken action to regulate foreign investment within their borders. Now cities are getting into the action. Last week, Beavercreek, Ohio, passed a law that empowers city planners to review real estate transactions for national security. Details inside.
Legislative wrap-up: Ag bill advances to House; sensitive data act revisited
By our count, at least ten bills have been floated that would add the Secretary of Agriculture to CFIUS. Last week, one of them cleared a House Committee. Also inside: The re-introduction of a bill that would expand the authority of CFIUS for deals impacting important personal information.