Latest Coverage
Latest Coverage for Subscribers Only
Access to the complete versions of our articles, research, and other resources are available to subscribers only. Get access now »
We’re creating a list of third-party monitors and auditors; add to list
At the request of our readers, Foreign Investment Watch is creating a list of third-party monitors and auditors that are actively engaged with transaction parties on CFIUS-imposed National Security Agreements. We are asking readers to submit any TPMs or TPAs with whom they have worked.
Exploring the legal issues that could impact national security reviews
A new report highlights several legal issues that could arise from proposals to “expand or create” new national security review mechanisms. Among them are due-process provisions that allow parties in a divestment order to see the information CFIUS used to make its decision. Details, report inside.
CFIUS head says more penalties are coming, as are changes to FIRRMA
Last week, CFIUS head Paul Rosen said that the Committee has issued two civil monetary penalties in 2023, and has several more pending at various stages. He also implied that changes to FIRRMA were coming. “It’s time to refine some of those regulations.” Details, speeches and more inside.
The key takeaways from last week’s second annual CFIUS conference
After CFIUS’s first annual conference in 2022, we crowdsourced “key takeaways” from nearly a dozen attendees. This year, we turned to Sidley’s Grigore Alexandru, who previously served as Deputy Director at the DoD’s Office of Foreign Investment Review. His key takeaways are inside.
House Select Committee gets active: Investigation, subpoena, letter, more
The House Select Committee has been busy. Last week alone, they held a “field hearing” in New York; disclosed an investigation into Wall Street firms; issued a subpoena regarding an unlicensed California lab; and penned a letter to Treasury Secretary Yellen regarding Gotion. Details inside.
Many VCs may be underestimating the full impact of outbound rule
The vast majority of venture capital firms say they will not be impacted much by the Treasury’s proposed rule on outbound investment. That’s according to our latest survey; only 16 percent of respondents said they would be impacted “significantly” by the proposal. Details inside.
House Committee to host CFIUS hearing. Agriculture on the docket?
The House Financial Services Committee will host a hearing on CFIUS oversight this week. Part of the hearing will be classified, and it looks like several legislative proposals — including one that would put the Agriculture Secretary on CFIUS — may be on the agenda. Details, witnesses, more inside.
Talking export controls, sanctions with Dell global compliance director
We recently sat down with Dell Technologies Legal Director for Global Compliance Ethan LeKate to discuss export controls, sanctions, artificial intelligence, and more. According to LeKate, cross-functional working groups were critical when responding to the Russia sanctions. Details inside.
Breaking down TikTok’s national security agreement with CFIUS
Technology reporter Emily Baker-White published a great piece for Forbes last week that analyzed an alleged draft of TikTok’s NSA with CFIUS. The draft appears to give the government “extensive supervision” and “near unfettered access” to the company. Key provisions and details inside.
Experts say outbound rule could impact investments in the U.S.
Much has been made of the fact that the Treasury Department’s proposed rule focuses exclusively on China. But that’s not the full story. In fact, the proposal could impact investments in any country, even the U.S., under certain circumstances. Details, examples of possible scenarios, and insights inside.
Clock ticking on effective date for some provisions of outbound rule
Okay, let’s not beat a dead horse. The E.O. has been released, and Treasury is seeking comment on their implementing rule, which likely won’t be finalized until next year. We know. But experts clarify that some of the provisions may be effective immediately. Details and insights are inside.
Treasury already seeking comments on the outbound investment regime
Just a few hours after President Biden issued the Executive Order on outbound investment in China, the Treasury Department unveiled its “Advanced Notice of Proposed Rulemaking,” and began soliciting feedback. Details, key questions, and instructions for commenting are inside.
Former CFIUS head: What’s “most notable” latest CFIUS report, E.O.
In our latest edition of “Ten With Tom,” the former head of CFIUS provides his thoughts on the Committee’s 2022 report to Congress, and on the President’s Executive Order on outbound investment. Whatever you do: Don’t call it “reverse CFIUS.” Details and insights inside.
Outbound foreign investment E.O. finally unveiled; no real surprises
Last year, our readers predicted that the Biden administration would issue an Executive Order on outbound investment before summer 2023. Wow, were they close. The E.O. was released this afternoon, and, as anticipated, will ban investments in certain Chinese technologies. Detail, E.O. inside.
CFIUS reviewing fewer deals, taking longer, imposing more mitigation
As we noted last week, the Committee published its latest report to Congress. In short: There are fewer transactions clearing in the declaration process, more notices proceeding to investigation, and more mitigation agreements. Details, report, and a downloadable spreadsheet of data inside.
Senate approves notification process for certain outbound investment
Setting aside the new Executive Order on outbound foreign investment, the U.S. Senate has approved an amendment to the National Defense Authorization Act to add mandatory notification of certain investments in adversarial nations such as China. Details and the amendment are inside.
Treasury releases the latest CFIUS annual report to Congress for ’22
CFIUS has released its annual report to Congress. According to the report, the Committee reviewed 440 covered transactions in 2022, basically the same as the prior year (436). We’ll provide a more detailed analysis in the coming weeks; the complete report is available for download »
Four venture capital firms receive letters from China Select Committee
Last week, the House Select Committee on the Chinese Communist Party sent letters to four venture capital firms, demanding details about the firms’ investments in Chinese AI, semiconductors, and quantum computing. And this just the beginning. The letters and implications are inside.
UK’s second annual report on NSIA keeps the regime in a “black box”
Last week, the UK government published its second report on the country’s investment screening regime. While the report shed some helpful light on cases and transaction parties, it’s silent on the reasoning for the regime’s decisions, leaving plenty within the NSIA “black box.”
Australia’s FIRB gets a surprising refresh; perhaps a lesson for CFIUS?
The website of Australia’s Foreign Investment Review Board recently disappeared. The incident raised some questions about whether Australia had “given up” on regulating foreign investment, but what transpired was actually a refreshing approach that may have lessons for CFIUS.