CFIUS Law Reform Imposes Serious Threats to Chinese Investments in the US

September 19, 2018 | BY

Jacelyn Johnson

Aaron Cutler, partner at Hogan Lovells, Washington, D.C. speaks to China Law & Practice on the new rules of the Committee on Foreign Investment in the United States (CFIUS) and its potential impact on Chinese investments in the U.S. Lawyers and in-house counsel should potentially understand the stricter controls imposed as the Foreign Investment Risk Review Modernization Act (FIRRMA) will significantly increase the number of transactions subject toCFIUS' review

“The demand for outside counsel and in-house counsel with knowledge of the CFIUS legal framework and practical experience routinely dealing with CFIUS will increase as well.”

 

How has the U.S. government previously implemented CFIUS rulings?

CFIUS is a U.S. government committee comprised of various U.S. agencies and chaired by the Treasury Department that conducts national security reviews of 'covered transactions' – ones that could result in control of a U.S. business by a foreign person. The recently enacted legislation eventually will give CFIUS the power to review certain non-controlling foreign investments in U.S. technology companies.

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