CFIUS Regulation of Foreign Investments: Mandatory Declarations; Covered Transactions; Countries of Special Concern
Latest CFIUS Developments; Best Practices for Compliance
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
International
- event Date
Wednesday, October 18, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will guide counsel to U.S. businesses accepting or making foreign investments and examine recent updates to the rules governing such investments. The panel will also discuss lessons from recent Committee on Foreign Investment in the United States (CFIUS) decisions. The panel will offer best practices for companies navigating the CFIUS process in light of recent developments.
Mr. Donahue is an executive in Accenture’s strategy consulting practice where he works with the leaders of Tech and Telecom companies to assess, plan for and mitigate the operational and financial implications of National Security regulatory requirements. He has experience advising clients through CFIUS negotiations, implementation of CFIUS and FOCI-mitigation agreements and business unit carve outs required to meet National Security requirements.
Mr. Walker is a strategy consultant and advisor to clients who are working to understand the business and financial model impacts of the CFIUS requirements, and works with companies post-mitigation program to develop the programs and operating models required by CFIUS and FOCI-mitigation agreements. He has worked with major Telecom, High Tech and A&D clients to set-up special business entities, as well as to make the changes required to pass National Security audits.
Mr. Schomig is a partner in the National Security Regulation and Investigations and Global Trade Controls practices of Paul Hastings and is based in the firm’s Washington, D.C. office. He focuses his practice in the areas of national security reviews before the Committee on Foreign Investment in the United States (CFIUS), as well as foreign ownership, control, or influence (FOCI) mitigation matters before the U.S. Departments of Defense and Energy. Mr. Schomig's experience includes advising on major private equity investments and large-scale mergers and acquisitions across a broad range of industries. He has market-leading CFIUS and FOCI expertise from over 16 years of specialized experience advising clients in all aspects of the CFIUS and FOCI-mitigation processes, including strategic planning, risk assessment, due diligence, filing, and mitigation negotiation and implementation. Mr. Schomig has long been recognized as a leading CFIUS expert, with experience that includes negotiating numerous complex CFIUS mitigation agreements.
The Trump administration sought to curb Chinese investment in the U.S. and established roadblocks over which such investment must overcome. Foreign investment concerns were not limited to China. The FIRRMA was signed into law in August 2018, expanding the scope of national security reviews of foreign investments in the U.S. and making mandatory declarations for some foreign investments. Under the law, the government was given regulatory authority over future investment controls.
The Biden administration continues to define and set boundaries related to foreign investment in the U.S. In September 2022, President Biden issued an Executive Order (EO) on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States expressly directing CFIUS to prioritize certain national security risks when reviewing covered transactions. In August 2023, President Biden issued an additional EO, calling for the creation of a new regime to screen (and in some cases, prohibit) outbound US investments in certain Chinese advanced technology sectors. Further, in July 2023 the US Senate adopted two amendments to the National Defense Authorization Act (NDAA) that would update the CFIUS statute and regulations to require the President to block certain agriculture transactions involving Chinese, Russian, North Korean, and Iranian investors, and requiring US companies to report investments in Chinese, Korean, Russian, and Iranian companies involved in AI, semiconductors, and other high-tech products.
Counsel must understand the limitations on foreign investment and the CFIUS and related risks involved and be prepared to navigate through the CFIUS process and any forthcoming processes applicable to foreign inbound or outbound investment.
Listen as our authoritative panel examines the latest regulations and guidance on foreign investment. The panel will discuss investments from China and other countries of "special concern" and the CFIUS and related risks involved, as well as address the increasing CFIUS caseload.
- FIRRMA overview
- Status of foreign investment regulation under the Biden administration
- Investments from China and other countries of "special concern" and the CFIUS risk
- Increasing CFIUS caseload
- Best practices for compliance
The panel will review these and other relevant issues:
- What steps has the Biden administration taken to increase regulation of foreign investment in the U.S. and U.S. investment in China?
- How should counsel and client companies comply with the relevant regulations and address potential issues when considering foreign investment opportunities or working with foreign investors?
- What are the lessons for counsel from recent CFIUS decisions and other related developments?
