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Outbound Foreign Investment Reviews
Outbound rule has been submitted to OMB; heading to final stages?

Outbound rule has been submitted to OMB; heading to final stages?

According to publicly available data confirmed by industry experts, the Treasury Department’s outbound investment proposal has been filed with the Office and Management and Budget. That means the proposed rule is likely in its final stages, and could be published soon. More inside.

At hearing, experts back sanctions, entity-based approach to outbound

At hearing, experts back sanctions, entity-based approach to outbound

At a House Financial Services Committee hearing on outbound, experts stated that Biden’s E.O. would create a “cumbersome and unnecessary bureaucratic process,” and that outbound investment authorities “should not be located within CFIUS.” Details, insights, and copies of the testimony are inside.

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.

Senate approves notification process for certain outbound investment

Senate approves notification process for certain outbound investment

Setting aside the new Executive Order on outbound foreign investment, the U.S. Senate has approved an amendment to the National Defense Authorization Act to add mandatory notification of certain investments in adversarial nations such as China. Details and the amendment are 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.

Biden to declare national emergency when issuing the outbound regime?

Biden to declare national emergency when issuing the outbound regime?

Last week, Patrick McHenry (R-NC) sent a letter to U.S. Treasury Secretary Janet Yellen questioning the merits of an Executive Order on outbound investment. The letter made two references to “the White House’s interest in declaring a national emergency” to justify the move. Details 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.

EC president: Europe considering reviews for outbound investments

EC president: Europe considering reviews for outbound investments

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.

Global FS firm: Threat of outbound regime already impacting managers

Global FS firm: Threat of outbound regime already impacting managers

While law firms have been informing their clients that an outbound foreign-investment review regime is imminent, financial services firms have been relatively silent. Until now. At least one firm expects to see increased due diligence costs, and admits that portfolio managers have already been impacted.

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.