The Treasury Department finalized the fee structure for filing certain transactions with the Committee on Foreign Investment in the U.S. and made a “clarifying revision” to the definition of “principal place of business,” according to a final rule released July 28. The fee structure was first outlined in March and April (see 2004280027), and the original definition for principal place of business was outlined in a January rule. The rule takes effect Aug. 27.
Export Compliance Daily is providing readers with some of the top stories for July 20-24 in case you missed them.
U.S. agencies are exploring ways to enforce industry compliance with mitigation agreements with the Committee on Foreign Investment in the U.S., despite travel restrictions imposed by the COVID-19 pandemic, a top Justice Department official said. The pandemic has specifically caused challenges around in-person site visits, which help enforcement agents ensure companies are adhering to CFIUS conditions for an approved investment, John Demers, assistant attorney general for national security, said.
The Committee on Foreign Investment in the U.S. recently opened investigations into “dozens” of completed deals involving Chinese investments that were not officially notified to CFIUS, a July 15 report from The Capitol Forum said. The deals -- which mostly took place within the past five years -- involved Chinese investments in U.S. technology, heavy industry and entertainment companies, the report said. Since May, CFIUS has “substantially” increased scrutiny of non-notified deals, the report said. The Treasury Department did not comment. Industry has seen a notable increase in CFIUS scrutiny on transactions involving medical supplies and sensitive technologies, especially those associated with Chinese investors (see 2005290027). CFIUS is also closely monitoring Chinese investors trying to take advantage of companies struggling due to the COVID-19 pandemic (see 2006230057).
Export Compliance Daily is providing readers with some of the top stories for June 22-26 in case you missed them.
U.S. and Chinese trade tensions could last for years and require a more clear, consistent approach from the U.S., experts told the U.S.-China Economic and Security Review Commission June 24. The U.S. should not address competition challenges through decoupling, they said, but should instead invest more heavily in technology research, pursue more involvement at international standards bodies and work with trade partners to counter China’s rise.
The Committee on Foreign Investment in the U.S. is closely monitoring Chinese investors who are trying to take advantage of struggling U.S. companies, trade lawyers said. CFIUS is also focusing on the semiconductor sector, where Chinese entities are hoping to evade recent U.S. rules that impose more strict license restrictions on sales of semiconductors and other technology to China and Huawei (see 2005150058), the lawyers said.
Amid rising U.S.-China technology competition, Congress will continue to push for increased restrictions on inbound Chinese investment, said Rep. Darin LaHood, R-Ill. LaHood also said the Trump administration -- which has experienced success using tariffs and export controls to gain ground in trade negotiations -- will likely continue to leverage those measures, particularly against China.
Export Compliance Daily is providing readers with some of the top stories for June 1-5 in case you missed them.
The Committee on Foreign Investment in the U.S. is increasing scrutiny on transactions involving basic medical supplies and sensitive technologies, trade lawyers said. Companies may also be seeing more CFIUS-related delays and a heavier involvement by political appointees in the CFIUS process as the Trump administration seeks to place more pressure on China, the lawyers said.