Article
Source: International Financial Law Review
Article
08.27.13
Through the Committee on Foreign Investment in the U.S. (CFIUS), the president has authority to review and investigate transactions involving the acquisition of a U.S. business by a foreign entity. He is also permitted to investigate the effect of these transactions on national security.
While both the U.S. and Chinese governments have said they welcome, and indeed encourage, Chinese direct investment in the U.S., recent actions by CFIUS have led Chinese companies to think that all transactions will be blocked.
Chris Wall, an international trade partner in Pillsbury’s Washington, D.C. office, reviews both controversial transactions thwarted due regulatory concerns or actions by CFIUS as well as successful transactions that have been approved by CFIUS. He offers insights into what distinguishes both of these types of transactions and what Chinese companies should keep in mind when considering acquiring a U.S. business.