The EU plans to step up controls on its home-grown technology. That is the short version.Continue Reading Protective Packaging: The EU’s Economic Security Package Changes the Landscape in Global Technology Controls
As part of its European Economic Security Package, the European Commission (‘Commission’) has recently proposed a number of legislative proposals and White Papers intended to better protect Europe’s strategic interests. We have covered the wider initiative here.Continue Reading The EU Commission Gets Serious About FDI Screening
On August 9, 2023, President Biden issued an Executive Order (E.O.) ordering the issuance of outbound investment restrictions. This E.O. comes after nearly a year of anticipation (as we have documented on several occasions over the past year). This is the start of the reverse Committee on Foreign Investment in the United States (CFIUS) process that has been mostly speculation (and blog articles) until yesterday. In conjunction, the Treasury Department issued a press release, fact sheet, and Advance Notice of Proposed Rulemaking (ANPRM) seeking comments from the public on the proposed restrictions by September 28.Continue Reading Reverse CFIUS Unveiled: Focus on China, Semiconductors, Artificial Intelligence, and Quantum Computing
- Outbound investment rules may require notification, but there is less risk of transactions being blocked by regulators.
- Investments in advanced semiconductors in China may still be subject to being blocked.
- The required notification, review, and possible restriction still represents a massive increase (from almost nothing) in regulation on outbound investments.
- Increases in the scope and powers of the reviewers may follow in future regulations or legislation.
- New outbound investment controls likely to focus on semiconductors, AI, and quantum computing.
- Biotechnology and battery technology investments overseas may not be subject to the upcoming proposed controls.
As we close out a wild year for international trade regulation, after hearing much talk about outbound investment review mechanisms, we may see a final dramatic change before the ball drops. Since the summer, we have talked here about potential outbound investment reviews (reverse CFIUS? SUIFC?). And while there have been reports of potential action by both Congress and the Biden Administration on outbound investment, it is all the more possible to see executive action before a new Congress takes seat.Continue Reading Will We Ring in the New Year with Outbound Investment Restrictions?
So you’d like to build a new fabrication facility in China, or just add some capabilities to your existing plant? Well, the U.S. Government may want to have a look at that transaction—and may soon have the authority to stop that transaction.Continue Reading Reverse CFIUS? S∩IℲƆ? New outbound investment review process becoming more likely