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CFIUS is meeting with third-party compliance providers about NSAs
The Office of Investment Security at the Treasury Department is holding meetings with third-party compliance providers to discuss “current and future CFIUS mitigation agreements.” Input from some providers has already been solicited. Details, contacts, the meaning, and more are inside.
The U.S. is not alone in considering outbound regime: EU taking a look
In addition to strengthening foreign investment screening and export controls in 2023, the European Commission plans to “examine whether additional tools are necessary in respect of outbound strategic investment controls.” Details, current outbound regimes, and the EC’s 2023 work program are inside.
Outbound investment cited in $1.7 trillion government spending bill
Right before the new year, President Biden signed a $1.7 trillion spending bill that includes a number of new priorities. Among them: Funding “to consider establishing a program to address the national security threats emanating from outbound investment.” Details, deadlines, and funding inside.
Key takeaways from 2022: Insights from advisors, partners and readers
We reached out to former CFIUS officials, our Editorial Advisory Board, our Founding Advisors, and many of you, to provide key takeaways from 2022. Inside are dozens of important insights, from changes to the national security calculus, to supply chain scrutiny and more. Details inside.
Latest letter to Treasury Secretary Yellen regards semiconductor deal
As readers know, we try to track all letters sent by Congressional leaders to the Treasury Secretary regarding foreign investments. The latest communique, from a pair of outspoken U.S. Congressmen, involves a pending Chinese investment in GEO Semiconductor. Details inside.
CFIUS says it lacks jurisdiction in case involving Fufeng in N. Dakota
Okay, it’s official. Despite the urging — and now criticism — of Congressional leaders, CFIUS has decided that Fufeng USA’s purchase of more than 300 acres of land in Grand Forks, North Dakota, is not a covered transaction. Details, reactions, and a (rare) copy of the CFIUS correspondence is inside.
U.S. House China committee chair proposes “punitive” divestment bill
Rep. Mike Gallagher (R-Wisc.), who was just selected to chair the House Select Committee on China, has proposed a bill that would force non-profits, university endowments, public pension plans, and other tax-exempt entities to divest from Chinese companies or lose their tax-exempt status.
State conducting national security review of investments. New trend?
South Dakota’s Kristi Noem is the latest governor to call for a review of the state’s investments to determine whether it has any stakes in Chinese companies. She’s not the first governor to conduct a “national security audit,” which we predicted would become more common. Details inside.
Now taking nominations for our annual list of “Top Advisors 2023”
Nominations are now open for our 2023 “Top Advisors” ranking, which will list some of the leading experts providing advice and counsel at the intersection of national security and foreign investment. Nominations can be made via email, and are due by Jan. 31, 2023.
Congressional leaders propose (yet another) bill on agriculture, land
A group of Republican Congressional leaders has introduced legislation aimed at addressing the national-security threat of “foreign adversaries” acquiring U.S. agricultural land. The bill would expand the foreign-holding information reported to the U.S. government. Details, context, full bill inside.
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.
CFIUS seeking more feedback on the use of its mandatory portal
How can CFIUS improve its portal? That’s basically the question Treasury has posed in a recent “request for comment.” The notice, which estimates the time it takes to use the portal, seeks feedback on ways to improve the process and minimize the burden. Details and feedback instructions 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.