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Ex-CFIUS head of international on how the Committee engages abroad
This week, we sit down with Laura Black, who — until just a few weeks ago — was Director of Policy and International Relations at CFIUS. Black discusses how CFIUS engages with other countries, and how those engagements progress and mature over time. Black’s insights are inside.
Readers predict CFIUS won’t levy first fine until after April Fool’s Day
As we covered in October, CFIUS has published enforcement guidelines, but has yet to levy any fines. So we asked readers to predict when we’d see the first penalty for “failure to file a mandatory declaration or notice.” The line was set at April Fool’s Day, 2023. Readers took the “over.” Results inside.
UK blocks third deal under NSIA: Chinese deal for Newport reversed
The UK government has blocked the acquisition of British chip-making facility Newport Wafer Fab by Chinese-owned Nexperia. The deal had been under scrutiny for months; U.S. Congressional leaders had even asked Pres. Biden to revoke the UK’s “excepted foreign state” status if the deal went through.
U.S. pressure leads to new foreign investment review regime in Israel
The Israeli government has agreed to step up its national security reviews of foreign investments. According to media reports, the move comes after several years of pressure from the U.S. government, specifically aimed at limiting Chinese influence on the Israeli economy. Details are inside.
Should mitigation agreements be disclosed to investors? It depends.
A subscriber recently asked us if National Security Agreements must be disclosed to investors. As we’ve reported in the past, it’s quite rare that mitigation agreements get disclosed in SEC filings. So, this reader asked, “could failure to disclose a NSA violate securities laws?” We asked the experts.
Companies, investors unconcerned about outbound regime … so far
Outbound investment reviews are not on the radar screens of U.S. institutional investors or companies. Yet. That’s according to a new FIW survey, which showed nearly half weren’t aware of the potential for outbound investment reviews. Details on impact, preparedness, and expert insights are inside.
When will CFIUS levy first fine for “failure to file?” Place your bet now.
The new CFIUS enforcement guidelines warn of penalties for three “acts or omissions,” including failure to file a mandatory declaration or notice. So, when will that first fine come? The line has been set at April Fool’s Day, and a free one-year subscription goes to any reader who picks the right date.
Meanwhile, in Canada: 24 deals got extended national security reviews
Just a month after CFIUS published its annual report to Congress, the Canadian government has released its own annual report on the Investment Canada Act, which — among other things — covers the country’s national security review process. Details, takeaways, and the full report are inside.
Senator wants Twitter probe by CFIUS. Does it have jurisdiction?
In a letter to Treasury Secretary Janet Yellen, U.S. Senator Chris Murphy (D-Conn.) urged CFIUS “to immediately conduct a review” of changes to Twitter’s ownership, including the stake held by Saudi Arabia. But experts say CFIUS may not have jurisdiction. Insights and the letter are inside.
FCC Commissioner says that CFIUS should take action to ban TikTok
Brendan Carr, one of the five commissioners at the Federal Communications Commission, told the media that CFIUS should take action to stop U.S. data on TikTok from flowing back to China. “I don’t believe there is a path forward for anything other than a ban,” he said. Details and context inside.
Is CFIUS administratively “off the rails?” Concerns, pushback inside
For the last three months, Foreign Investment Watch has been collecting data from corporations, lawyers and former regulators regarding frustrations with speed, process, and quality control at CFIUS. Inside, we outline their six key issues, and offer pushback and counter-arguments as well.
CFIUS (finally!) publishes some enforcement and penalty guidelines
In one of Paul Rosen’s first acts as head of CFIUS, the Treasury Department has issued formal enforcement and penalty guidelines. The guidance, promised more than two years ago, includes an interesting list of factors that CFIUS considers when determining penalties. Details and guidance inside.
National security strategy unveiled, and outbound regime is referenced
The Biden Administration has released a 48-page “National Security Strategy,” which explores major challenges and approaches to advancing U.S. vital interests. Among the “targeted new approaches” mentioned is screening of outbound investments. Details, the document, and expert insights inside.
Survey: Majority of readers expect outbound E.O. in next nine months
The vast majority of Foreign Investment Watch readers (69.1%) believe that President Biden will issue an Executive Order requiring national-security reviews of outbound foreign investments in China and other nations. Details on timing and the business impact are inside.
U.S. taking “small yard, high fence” approach to critical technology
In a speech delivered at Georgetown University last week, National Security Advisor Jake Sullivan provided some color commentary on the Biden Administration’s national-security strategy, leveraging a phrase utilized by policy analyst Samm Sacks in 2018 (pictured). Details, full speech inside.
Implementing NSAs: Tips from an exec. who’s done it (three times)
This week, we sit down with Karen Plonty, who most recently served as Chief Security Officer of Momentus, where she oversaw compliance with the company’s National Security Agreement. We discuss *real* trends in NSAs, how CFIUS actually monitors agreements, and more.
Survey: Will outbound national-security reviews become reality?
Based on questions from readers, we’ve decided to do a quick pulse survey on the prospects for a national-security review regime for outbound investments. Is an Executive Order coming? How about legislation? When? Take the survey, and we’ll publish results in an upcoming edition.
Republicans ask GAO to look at foreign investment in U.S. farms
Citing “inaccuracies” in foreign investment data collected by the Department of Agriculture, more than 100 U.S. House Republicans have asked the Government Accountability Office to study foreign investment in U.S. farmland, and its impact on national security. Details and the letter are inside.
Congressional leaders speaking out on outbound investment reviews
Rep. Patrick McHenry (R-NC), Ranking Member on the House Financial Services Committee, is the latest to chime in on national-security reviews of outbound investments, urging the Biden Administration to avoid resorting to “unilateral measures.” Details, the letter, and others are inside.
At hearing on outbound screening: Risks, approaches & consequences
National security experts debated an outbound foreign investment regime at a recent Senate Banking Committee hearing. According to one expert, whatever the U.S. adopts, “we should be prepared for other countries to develop similar authorities.” Summary, details and testimony inside.