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Outbound Investment
China Select Committee wants more broad approach to outbound regime

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.

Many VCs may be underestimating the full impact of outbound rule

Many VCs may be underestimating the full impact of outbound rule

The vast majority of venture capital firms say they will not be impacted much by the Treasury’s proposed rule on outbound investment. That’s according to our latest survey; only 16 percent of respondents said they would be impacted “significantly” by the proposal. Details inside.

Experts say outbound rule could impact investments in the U.S.

Experts say outbound rule could impact investments in the U.S.

Much has been made of the fact that the Treasury Department’s proposed rule focuses exclusively on China. But that’s not the full story. In fact, the proposal could impact investments in any country, even the U.S., under certain circumstances. Details, examples of possible scenarios, and insights inside.

Clock ticking on effective date for some provisions of outbound rule

Clock ticking on effective date for some provisions of outbound rule

Okay, let’s not beat a dead horse. The E.O. has been released, and Treasury is seeking comment on their implementing rule, which likely won’t be finalized until next year. We know. But experts clarify that some of the provisions may be effective immediately. Details and insights are inside.

Treasury already seeking comments on the outbound investment regime

Treasury already seeking comments on the outbound investment regime

Just a few hours after President Biden issued the Executive Order on outbound investment in China, the Treasury Department unveiled its “Advanced Notice of Proposed Rulemaking,” and began soliciting feedback. Details, key questions, and instructions for commenting are inside.

Outbound foreign investment E.O. finally unveiled; no real surprises

Outbound foreign investment E.O. finally unveiled; no real surprises

Last year, our readers predicted that the Biden administration would issue an Executive Order on outbound investment before summer 2023. Wow, were they close. The E.O. was released this afternoon, and, as anticipated, will ban investments in certain Chinese technologies. Detail, E.O. inside.

Would Moderna’s $1B deal in China have triggered outbound scrutiny?

Would Moderna’s $1B deal in China have triggered outbound scrutiny?

We’ve got a live outbound case study, folks. Last week, Moderna inked a deal to invest $1 billion in mRNA research and development in China. So, would that deal have triggered outbound scrutiny — and increased deal friction — were an outbound review regime in place? Expert insights inside.

Report: 17% of investment deals in Chinese AI cos. include U.S. VC

Report: 17% of investment deals in Chinese AI cos. include U.S. VC

A new report out of Georgetown University may be the first to analyze data on outgoing U.S. investment into Chinese artificial intelligence companies. The report includes a wealth of data, and may offer much-needed context for a possible outbound regime. Details and the report are inside.

G7 acknowledges that outbound “could be important”; still no E.O.

G7 acknowledges that outbound “could be important”; still no E.O.

In a joint statement, the G7 said it recognized that “appropriate measures designed to address risks from outbound investment could be important to complement existing tools” like export controls, but we’re still waiting for a formal Executive Order from the Biden Administration. Details inside.

Will outbound foreign investment review regime be unveiled at G7? 

Will outbound foreign investment review regime be unveiled at G7? 

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.

Outbound investment cited in $1.7 trillion government spending bill

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.

At hearing on outbound screening: Risks, approaches & consequences

At hearing on outbound screening: Risks, approaches & consequences

National security experts debated an outbound foreign investment regime at a recent Senate Banking Committee hearing. According to one expert, whatever the U.S. adopts, “we should be prepared for other countries to develop similar authorities.” Summary, details and testimony inside.

Congressional leaders ask President to take action on outbound regime

Congressional leaders ask President to take action on outbound regime

Three U.S. Senators and five Representatives, including Speaker of the House Nancy Pelosi, have sent a letter to President Biden urging his administration to “move forward with executive action” on an outbound foreign-investment review regime. Details and the actual letter are inside.

Outbound screening is nixed from latest legislation. So what’s next?

Outbound screening is nixed from latest legislation. So what’s next?

A national security screening mechanism for outbound investments was conspicuously absent from the $280 billion semiconductor bill passed by Congress last week. But the bill did include several outbound “guardrails,” and experts say the doors to an “outbound CFIUS” are still wide open.

Progress being made on revised outbound screening proposal

Progress being made on revised outbound screening proposal

A bipartisan group of Congressional leaders is working on a compromise that would create a new screening regime to review outbound investments in China and other adversarial nations. Experts have called the proposed regime “onerous.” A review and the latest updates are inside.

Ten Minutes On: The likelihood of a new outbound screening regime

Ten Minutes On: The likelihood of a new outbound screening regime

In the latest edition of our short video series “Ten Minutes On,” we discuss the potential for an outbound investment screening regime with expert and professor Sarah Bauerle Danzman. According to Danzman, the latest proposed regime would be “quite onerous.” All the details inside.

U.S. House proposes an outbound foreign investment review process

U.S. House proposes an outbound foreign investment review process

Buried inside the nearly 3,000-page America COMPETES Act is a proposal to create an interagency process to regulate outbound investments. Details on these “National Critical Capabilities Reviews,” which would be the corollary of the CFIUS inbound review process, are inside.