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Committee wants to give CFIUS additional authorities, new tools
Based on recent hearings and industry meetings, the Select Committee has published a policy paper with a staggering 150 recommendations for countering China. The document outlines flaws in the CFIUS model, and suggests tactics to improve the approach to national security. Details, report inside.
Pension funds, colleges investing billions in China; outbound impact?
Most U.S. public pension funds and universities have committed massive amounts of capital to China, including investments in sensitive technologies. That’s according to a new report, which claims that the proposed outbound review regime could be undermined by this activity. Details, report inside.
Compliance reminder: FCC foreign holder information deadline in Jan.
The FCC has finally published information on the one-time collection of information that it is requiring regarding foreign ownership. The filing deadline will be January of 2024, and authorization holders will need to certify the accuracy of the information provided. Some exemptions apply. Details inside.
Raimondo wants more money for BIS; China Select says ‘hold on…’
At a defense industry forum last week, Commerce Secretary Gina Raimondo stated that her Department, particularly the Bureau of Industry and Security, needs additional funds to protect America. Almost immediately after her remarks, the House Select Committee pushed back. Details inside.
More countries making progress on their investment screening regimes
Countries throughout the world continue to mature their investment screening regimes, or — in the case of Ireland — unveil their first ones. We have details inside, including an update on Mexico, which has signed an agreement with the Treasury Department to cooperate and share best practices. More inside.
Dueling outbound letters: Make it statutory, or is the tactic “moronic?”
Last week, a bipartisan group of 43 Congressional leaders delivered a letter to the House and Senate Armed Services Committees, recommending a stronger outbound screening regime. The letter was immediately followed by one from House Finance leaders, questioning the sanity of the move.
Homeland Security will host a new “Supply Chain Resilience Center”
Last week, President Biden and Secretary of Homeland Security Alejandro Mayorkas unveiled a new Supply Chain Resilience Center, which is aimed at protecting U.S. supply chain from evolving threats. The SCRC will analyze vulnerabilities, conduct scenario planning, and more. Details inside.
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.
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.