Last week, Treasury Secretary Janet Yellen confirmed that outbound foreign-investment reviews are coming, and details of the regime are starting to emerge. The latest on timing, a FIRRMA-like pilot program, the notification process, any “look-back” provisions, and more are inside.
Hot TopicsFDI Regimes in the European Union
In a speech last week in Brussels, European Commission president Ursula von der Leyen reiterated that the EC is considering “a targeted instrument on outbound investment.” The regime would likely relate to a “small number” of sensitive technologies. Details and speech inside.
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.
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.
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.
The U.S.-EU Trade and Technology Council has announced that it intends to establish “unprecedented” cooperation on export controls, and create “practical exercises” to share best practices on investment screening cooperation. Details, context, and the joint statement are inside.
Last week, the European Commission published its first annual report on the screening of foreign investments throughout the EU. The vast majority of transactions reviewed by Member States were approved without conditions. Details, the report, and more are inside.
Last week, the Wall Street Journal reported that a Chinese state-controlled company had acquired an Italian maker of military drones back in 2018. While the Journal didn’t break the story, experts say the article highlights a need for stronger CFIUS-like regimes globally.
A German think tank that focuses on China recently compared foreign investment screening mechanisms in the U.S. versus the EU, and found the European regime more flexible but also potentially less secure. Details, helpful charts, and recommendations are inside.
Last week, the U.S. and EU Trade and Technology Council met for the first time to coordinate approaches on numerous topics, including export controls and foreign investment screening. What’s the TTC? We’ve got details, contacts, the statement, next steps, and more inside.
Fresh on the heels of a similar Act in the UK, the German government has expanded its powers to review foreign acquisitions and investments in German companies. Similar to CFIUS, the new rule impacts transactions immediately. Details, the provisions, and more inside.
For the first time, French authorities have blocked the acquisition of a technology company by a U.S. corporation, citing “national strategic interests” and protection of the French defense industry. Details, the case, contacts, the lessons, and more are inside.
Just a friendly reminder that the new CFIUS critical technology mandatory filing requirement took effect last week, as did EU’s new screening mechanism for foreign direct investments. Key details are inside, as are complete frameworks, fact sheets, FAQs, and more.
A new EU framework for the screening of foreign direct investments in the EU will apply starting Oct. 2020. Member states are required to notify the EU Commission about their national investment screening mechanisms.