President Trump-era CFIUS reforms broaden review of foreign transactions

129 President Trump, is a substantial improvement to CFIUS, closing loopholes that the Chinese had been exploiting and broadening the scope of the CFIUS authorities in important ways. The new law extends CFIUS review time-frames, increases the types of transactions subject to CFIUS’ jurisdiction, makes certain notifications mandatory, and establishes a process for potentially expedited review and approval of certain transactions. The four new “covered transactions” include real estate deals near US national security facilities, deals involving “critical infrastructure” or “critical technologies,” changes in ownership rights by a foreign investor, and any transaction designed to evade the CFIUS process. In exchange for all these additional burdens, the new law also helps companies by clarifying time limits for decisions and places important jurisdictional limits on the expansion of the law’s scope. NOTES 1 See Hannas, William, James Mulvenon, and Anna Puglisi, Chinese Industrial Espionage. London: Routledge. 2013. 2 For the best analysis of Made in China 2025, see Made in China 2025: Global Ambitions Built on Local Protections. US Chamber of Commerce. 2017. https://www.uschamber.com/sites/default/files/final_made in_china_2025_report_full.pdf. 3 The IP Commission Report: The Report of the Commission on the Theft of American Intellectual Property. National Bureau of Asian Research. May 2013. http://www.ipcommission.org/report/IP_Commission _Report_Update_2017.pdf. 4 For his comments on costs, see AElVideos. “Gen. Alexander: Greatest Transfer of Wealth in History.” YouTube. July 09, 2012. https://www.youtube.com/watch?v=JOFk44yy6lQ. 5 All analysis and data are taken directly from the official Thousand Talents Program website: http://www .1000plan.org. 6 “The Recruitment Program of Global Experts.” Thousand Talents. http://www.1000plan.org/qrjh/section/2 ?m=rcrd. 7 Allanalysis and data are taken directly from the official Thousand Talents Program website: http://www .1000plan.org. 8 See Triway International website: http://www.triwayinc.com. Note that the term “S&T” is missing from the site’s English-language version. 9 Northern California Global Trade Assistance Directory, 2000-2001. About 10 percent of SCEA’s members are from Taiwan. 10 “China-US Joint Research Center for Ecosystem and Environmental Change.” University of Tennessee Knoxville. http://jrceec.utk.edu/about.html. 11 Ibid. 12 Ibid. 13 Zhou, Wei (Alte). “BBB WHER AAD AT” (“Analysis of China’s Strategy for Corporate Foreign Direct Investment”). BHR SIR. Science & Technology Progress and Policy. 2004.11.56. Section 8 HOUSE_OVERSIGHT_020588