There isn’t a “coherent” strategy among the various bills in Congress to address international technology competition, said Jon Bateman, a technology policy expert with the Carnegie Endowment for International Peace. Bateman, speaking during a June 23 event hosted by Foreign Policy magazine, said the lack of coherence isn’t “altogether surprising, partly because the government is “classically plagued with coherence problems.”
Several companies recently updated the status of their ongoing reviews with the Committee on Foreign Investment in the U.S. One of the companies, Swiss renewable energy company Viston United Swiss, was notified that CFIUS officially began its 45-day notice review period into its planned acquisition of California-based Petroteq Energy, an oil production and technology company (see 2204200015). The two companies had filed the notice to CFIUS May 16 and were told the review period started May 24, Viston said in a document filed with the SEC.
Lawyers are continuing to see an uptick in outreaches by the Committee on Foreign Investment in the U.S. related to non-notified deals, especially if they involve Chinese investors. Carl Valenstein, a CFIUS lawyer with Morgan Lewis, said some of his clients in the life sciences sector, even though they weren’t working with critical technologies, have recently been contacted by CFIUS.
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U.S.-based TuSimple Holdings, which provides self-driving truck and autonomous freight shipping technology, recently entered into a national security agreement with the Committee on Foreign Investment in the U.S. involving a 4-year-old transaction (see 2111230075). The NSA includes restrictions on the company’s data sharing and requires the company to “periodically meet with and report” to CFIUS monitoring agencies, according to a recent SEC filing.
Increasing Chinese investments in U.S. agriculture could reduce China’s need for American exports and give Beijing “undue leverage over U.S. supply chains,” the U.S.-China Economic and Security Review Commission said in a report last week. The U.S. may need to rethink or improve how it uses the Committee on Foreign Investment in the U.S. to better catch those investments, the commission said, which may be harming U.S. economic and national security.
John Beahn, former head of Shearman & Sterling's Committee on Foreign Investment in the U.S. and foreign direct investment practice, has joined Milbank as a partner, the firm announced in an email. Beahn's work will center on CFIUS matters and FDI proceedings as well as national security issues, including sanctions and arms controls, the firm said.
As countries continue to impose trade restrictions against Russia and Belarus, companies should expect longer review times and increased scrutiny on foreign direct investment involving either of those two nations, law firms said. Deal-makers in the EU should specifically prepare for more red tape resulting from a recent “sweeping” guidance from the European Commission, Fried Frank said in a May 2 alert, which could also speed up the rollout of further mandatory FDI screening regimes across Europe.
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The Biden administration should “employ all tools necessary” to stop Chinese-owned Nexperia’s acquisition of Newport Wafer Fab (NWF), a U.K.-based chip facility, the Republican-led China Task Force said in a letter to the White House released April 21. If the acquisition is completed, the U.S. should remove the U.K. from the Committee on Foreign Investment in the U.S. white list and impose strict export controls on shipments to NWF, the House members said.