On July 11, the Trump administration issued an order blocking and requiring the unwinding of a 2020 acquisition by which Jupiter Systems, LLC (Jupiter), a U.S.-based audiovisual equipment supplier, was acquired by Suirui International Co., Limited (Suirui), a Chinese-based cloud communication service carrier. The administration cited national security concerns due to “the potential compromise of Jupiter’s products used in military and critical infrastructure environments.”Continue Reading CFIUS and President Trump Force Unwinding of 2020 Acquisition of Jupiter Systems, LLC
America First Investment Policy Sets Sights on China
On February 21, the Trump Administration released the America First Investment Policy (the memo or memorandum). The wide-ranging memo formally targets investment from the People’s Republic of China, including Hong Kong and Macau (collectively, the PRC), in sensitive U.S. sectors, modifies aspects of the Committee for Foreign Investment in the United States (CFIUS) process, and proposes new restrictions on outbound investment. Continue Reading America First Investment Policy Sets Sights on China
Insight on U.S. Foreign Investment Regulations for ABA Business Law Today
We recently authored an article for Business Law Today offering insight into a proposed amendment to the operations of the Committee on Foreign Investment in the United States (CFIUS), the interagency committee that reviews foreign investment in the United States for potential national security implications.Continue Reading Insight on U.S. Foreign Investment Regulations for ABA Business Law Today
CFIUS Update: Larger Penalties, Sharper Monitoring
On April 11, the U.S. Treasury Department promulgated a Notice of Proposed Rulemaking (NPRM) amending the regulations that govern the operations of the Committee on Foreign Investment in the United States (CFIUS) to increase penalties on offenders, expand CFIUS authority to request information, and tighten the time frame parties have to respond to drafts of mitigation agreement terms. CFIUS is the U.S. government’s interagency body that reviews potential national security concerns resulting from foreign investments in and acquisitions of U.S. businesses.Continue Reading CFIUS Update: Larger Penalties, Sharper Monitoring
CFIUS Update: A More Refined Focus, Increased Risks
The U.S. government continues to aggressively monitor and impose restrictions on transactions deemed to threaten U.S. national security. Continue Reading CFIUS Update: A More Refined Focus, Increased Risks
New CFIUS Guidelines Reflect Shift in Enforcement Posture
On October 20, the Committee on Foreign Investment in the United States (CFIUS) released new, non-binding Enforcement and Penalty Guidelines (Guidelines). The Guidelines follow upon last month’s Executive Order linking CFIUS reviews directly to the president’s national security prerogatives. In particular, the Guidelines detail the following:
- Categories of conduct that constitute violations.
- Sources of information CFIUS relies upon to determine whether a violation has occurred.
- The process for developing and imposing penalties.
- Aggravating and mitigating factors that CFIUS evaluates when deciding whether to impose a penalty.
Continue Reading New CFIUS Guidelines Reflect Shift in Enforcement Posture
A First! President Hones Government’s Foreign Investment Review
On September 15, President Biden announced the issuance of Executive Order (EO) 14083 to sharpen the focus of inbound investment screening by more formally tying the role of the Committee on Foreign Investment in the United States (CFIUS or the Committee) to the president’s national security prerogatives. For the first time since the Committee was established in 1975, the EO provides formal presidential direction delineating five specific factors for the Committee to consider when reviewing foreign acquisitions of U.S. companies.
Continue Reading A First! President Hones Government’s Foreign Investment Review
Impact of Government Shutdown on CFIUS Reviews
I commented about the impact the government shutdown is having on deals that require review and approval by the Committee on Foreign investment in the United States (CFIUS). CFIUS is the interagency committee authorized to review transactions involving foreign investment in the United States to determine the effect of such transactions on national security.
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Thad McBride Discusses New CFIUS Rules
I recently provided insight for a Bloomberg Law article on the new interim rules implementing the Foreign Investment Risk Review Modernization Act (FIRRMA). The interim rules, which went into effect on November 10, broaden the authority of the Committee of Foreign Investment of the United States (CFIUS) – an interagency committee that reviews foreign investments
Foreign Acquisition of U.S. Assets: Aggressive Actions Likely to Continue
In an article published in the November 2018 issue of the ACC Docket, I co-authored an article with Elliot Burger, senior legal counsel at Linamar Corporation in Ontario, Canada discuss the expanding role of the Committee on Foreign Investment in the United States (CFIUS). CFIUS is the U.S. government committee that reviews transactions that could result in control of a U.S. business by a foreign person in order to determine whether the transaction could harm U.S. national security.
Continue Reading Foreign Acquisition of U.S. Assets: Aggressive Actions Likely to Continue