China’s strategy of tapping commercial technologies to improve military capabilities is well known. But how those “Military-Civil Fusion” efforts have been cataloged and classified by the U.S. government is perhaps less well understood. This week, we provide a primer on definitions and classifications.
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Guest ColumnAdvisor pens a CFIUS parable: “The party house and the guard dog”
Stephen Heifetz, one of our most outspoken Editorial Advisory Board members, does not mince words; he’s called the structure of CFIUS a “nightmare,” and has described the Committee’s machinery as “a long and painful grind.” He’s now penned a CFIUS parable we found impossible to withhold from publication.
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 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.
Will UK official “make sure the lawyers don’t get rich” off FDI law?
Oliver Dowden, Deputy Prime Minister of the United Kingdom, recently said that one of his objectives was to make the country’s FDI regime “boring, certain and predictable,” so that lawyers don’t get rich from it. According to Guest Columnist Stephen Heifetz, that might be easier said than done.
Ex-CFIUS head says TikTok risks remain “unacceptably unresolved”
The drumbeat regarding national security risks posed by TikTok has reached a fever pitch. But according to Thomas Feddo, who served as the first-ever Assistant Secretary for Investment Security at the Treasury Department, the risks remain “unacceptably unresolved.” His insights are inside.
CFIUS signals heightened attention on bankruptcy-related transactions
In a provocative demonstration that it scrutinizes all types of transactions, no matter their origin, CFIUS has reportedly been vetting the proposed $1 billion sale of bankrupt crypto lender Voyager Digital’s assets to Binance. Details, context, and why the development matters, are inside.
Top 10 takeaways from the latest CFIUS annual report to Congress
As we reported last week, CFIUS reviewed a record number of transactions in 2021, according to the Committee’s latest report. For additional insights, we turned to Grigore Alexandru, who broke down the DoD’s unclassified CFIUS procedures for us earlier this year. His “top 10” takeaways are inside.
Crickets from the Committee: Dealing with CFIUS radio silence
This week, two CFIUS experts explain the Committee’s decision-making process regarding non-notified transactions. Interestingly, they note that CFIUS doesn’t always notify parties that it won’t pursue a transaction. Inside: What to do when CFIUS stops engaging, and more.
A “how to” guide for complying with CFIUS mitigation agreements
As we’ve reported extensively, CFIUS is increasingly utilizing mitigation agreements to resolve national security risks. This week, two experts provide recommendations that organizations should consider as they work through the mitigation agreement process.