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China Select: Five VCs invested $3B into Chinese cos. supporting CCP

China Select: Five VCs invested $3B into Chinese cos. supporting CCP

Last week, the China Select Committee completed an investigation that found five venture capital firms have invested billions into Chinese companies “that both created dangerous People’s Liberation Army weapon systems” and developed technologies for surveilling the population. Findings, report inside.

Report on screening mechanisms: Restrictive regimes still attractive

Report on screening mechanisms: Restrictive regimes still attractive

A new 50-page research report from the Bank of France may be one of the first to measure the restrictiveness of foreign investment regimes. The report also looks at economic impact; some of the most restrictive countries still remain the most attractive to foreign investors. Details inside.

Exploring the legal issues that could impact national security reviews

Exploring the legal issues that could impact national security reviews

A new report highlights several legal issues that could arise from proposals to “expand or create” new national security review mechanisms. Among them are due-process provisions that allow parties in a divestment order to see the information CFIUS used to make its decision. Details, report inside.

CFIUS reviewing fewer deals, taking longer, imposing more mitigation

CFIUS reviewing fewer deals, taking longer, imposing more mitigation

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.

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.

Latest CFIUS reports from CRS may hint at future Congressional actions

Latest CFIUS reports from CRS may hint at future Congressional actions

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.

Judicial deference, contracting costs, and national security creep

Judicial deference, contracting costs, and national security creep

We’re not ones for academic research papers, but a recent 66-page essay by two professors actually got our attention. The professors argue that the expansion of CFIUS’s jurisdiction and national security “creep” may have broader implications on dealmaking and the economy. Details inside.

Top 10 takeaways from the latest CFIUS annual report to Congress

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.

Congressional Research Service publishes overview on FDI issues

Congressional Research Service publishes overview on FDI issues

A Congressional research agency has published an overview of key issues related to foreign investment and national security. The report provides a “plain English” summary of key positions and upcoming decisions for members of Congress. Details and the report are inside.

Survey data show executives not educated on, prepared for, CFIUS

Survey data show executives not educated on, prepared for, CFIUS

A new survey by Foreign Investment Watch shows that executives feel neither educated nor adequately prepared to comply with new FIRRMA rules. When asked how educated they felt about CFIUS rules or filing processes (on a scale of one to ten, with ten being “very prepared”) the average response was only four. Details inside.

CFIUS investigations decrease in latest report to Congress

CFIUS investigations decrease in latest report to Congress

CFIUS posted its annual report to Congress. Inside, we provide extensive details, including charts of notices, investigations and withdrawals, as well as an update on mitigation agreements, enforcement, time to respond by CFIUS, sectors and countries most impacted, and more.