Foreign investment security

US national security concerns return to spotlight as new investment regulations set in


New US regulations went into effect on Thursday to expand the review of foreign investments for potential national security risks, effectively making restrictions that curb China’s access to technology and critical assets permanent.

The regulations extend the reach of the Committee on Foreign Investment in the United States (CFIUS), the inter-agency committee that since 1975 has reviewed the national security implications of foreign investments in US businesses.

Approved in a rare display of bipartisan support in Congress, the revised regulations will now let the US government review any deals involving foreign buyers that take even a “non-controlling” minority stake in a US company if the government finds that critical infrastructure, technology or sensitive personal data are involved. Previously, only deals that involved controlling stakes were reviewed.