Podcast #14: CFIUS and its Impact on Chinese Investment in the US

August 14, 2020 | BY

Vincent Chow

Recent reforms to the U.S. foreign investment review body's powers have contributed to a sharp drop in outbound Chinese investment to the U.S.

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With news about Chinese video-sharing platform TikTok dominating headlines, attention is being paid once again to the government body at the center of reviewing inbound foreign investment into the U.S., the Committee on Foreign Investment in the United States (CFIUS). In this episode, Jeremy Zucker and Darshak Dholakia delve into the CFIUS review process and its implications for Chinese investors; the history of the CFIUS review; recent reforms bolstering its powers; the unusualness of the TikTok case; as well as concrete data showing the practical impact of CFIUS on outbound Chinese investment into the U.S.

For the full episode, click here to listen on Apple Podcasts and here for Spotify.

Jeremy Zucker and Darshak Dholakia are partners at Dechert based in Washington DC. Jeremy is co-chair of the firm's International Trade and Government Regulation practice and has extensive experience advising on CFIUS reviews of foreign investment. Darshak is also an integral part of the CFIUS team at Dechert, having advised on many such reviews as well.

The China Law Podcast is a weekly podcast exploring China's business and financial sectors from a legal perspective hosted by Vincent Chow. Get in touch at [email protected] with any feedback and ideas for future episodes.

Episode outline

  • 01:24 What CFIUS is and the powers it has
  • 04:41 CFIUS' annual work reports and takeaways for Chinese investors
  • 08:05 Mitigation measures and their growing importance
  • 14:58 CFIUS reforms bolstering its authority
  • 19:52 Common themes of CFIUS scrutiny of Chinese investment
  • 23:47 Deciding whether to voluntarily file for CFIUS review

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