The Treasury Department has proposed a rule that would “enhance certain CFIUS procedures” and sharpen its penalty and enforcement authorities. The proposed changes reflect the Committee’s evolution and increased focus on monitoring, compliance, and enforcement. Details are inside.
According to some readers of Foreign Investment Watch, CFIUS has imposed National Security Agreements by order on a non-interim basis, and has done so without negotiating with the transactions parties. Experts say this would be an important development with far-reaching implications.
Last week, Foreign Investment Watch spent some time with a senior CFIUS official, who provided updates on recent staffing changes, and insights into the Committee’s priorities for 2024. According to the official, the first tranche of proposed changes to FIRRMA may come as early as Q1. Details inside.
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.
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.
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.
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.
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.
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.
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.
China just announced export restrictions on critical metals used in the manufacturing of semiconductor chips, such as gallium and germanium. So we decided to look at actions CFIUS has taken on related transactions. Our findings? CFIUS has rarely signed off on deals that involve gallium.
Hard to believe, but Paul Rosen just celebrated his one-year anniversary as head of CFIUS. We sat down with Rosen for an exclusive interview to discuss his first year on the job, and covered everything from penalties to guidance. According to Rosen, CFIUS is “always working to improve.”
The Congressional Research Service has published its latest briefings on CFIUS for elected officials. The two-page reports are generally uncontroversial summaries of recent developments, but they do include “considerations for Congress,” which may act as an early-warning system on future actions.
As most readers know, CFIUS has jurisdiction over certain real estate transactions near some specific military installations. But the list of locations, which was created by the DoD, did not include sites like Grand Forks Air Force Base. Well, it looks like that’s about to change. Details and proposal are inside.
According to media reports, China-based battery firm Gotion has been given the go-ahead by CFIUS to build a battery factory in the southern U.S. But don’t assume that CFIUS reviewed the deal and found no national security concerns: It may have been a “greenfield” deal. Details, insights inside.
At an industry conference last week, Assistant Secretary for Investment Security Paul Rosen said that final penalty determinations have already been issued under the new Enforcement Guidelines. The penalties have not yet been publicly reported. Details and other crowdsourced insights are inside.
CFIUS has determined that the UK and New Zealand will remain “excepted foreign states.” That means that qualifying investors from all “Five Eyes” countries will continue to be excepted from CFIUS review of certain types of transactions. Details, and the answer to the question “so what?” are inside.
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.
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.
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.