US Dept. of the Treasury Releases 2021 CFIUS Annual Report.

At the beginning of August, the Department of the Treasury, Chair of the Committee on Foreign Investment in the United States (CFIUS), released the public version of the CFIUS Annual Report to Congress for calendar year 2021.

The Annual Report provides statistics on transactions filed with CFIUS in 2021. As you are aware, CFIUS is tasked with reviewing foreign transactions and investments in the United States that may be harmful to national security.

According to the published report, highlights for 2021 include:

  1. CFIUS reviewed 164 declarations and 272 notices, a record number of covered transactions
  2. CFIUS cleared 60% of cases in the 30-day assessment period or within the initial 45-day review period for a notice.
  3. CFIUS provided comments on draft notices within 6 business days and accepted formal notices within 6 business days. A reduction from 9 days in 2020.

A copy of the report can be found here: https://home.treasury.gov/system/files/206/CFIUS-Public-AnnualReporttoCongressCY2021.pdf

If you or anyone you know has any CFIUS questions, or needs assistance with a CFIUS filing, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

China introduces new legislation to placate US IP concerns.

great wall of china

Photo by Johannes Plenio on Pexels.com

According to Bloomberg – China’s legislative body has passed new legislation to replace three main laws that impact non-Chinese companies doing business in China:(1) Law of Joint Ventures with Chinese and Foreign Investment, the (2) Law on Foreign-Capital Enterprises and the (3) Law on Chinese-Foreign Contractual Joint Ventures.

To summarize, the new legislation includes: (1) promise of equal support to foreign and domestic firms, (2) equal treatment for license applications, (3) foreign companies can participate in setting industry standards and in government procurement, (4) right of foreign companies to appeal non-security related decisions and (5) a complaints mechanism for foreign companies.

The law was passed on March 15th and will take effect on January 1, 2020. Whether this will impact the current trade negotiations is still yet to be seen.