US: CFIUS TO BASE MANDATORY CRITICAL TECHNOLOGY REVIEWS ON EXPORT CONTROL CRITERIA

On 18 June, Jones Day published an article saying that the US Treasury recently issued proposed regulations that will alter and in some cases expand the scope of critical technology foreign investments subject to mandatory review by the Committee on Foreign Investment in the United States (CFIUS). It says that the proposed regulations align the CFIUS mandatory review of foreign investments in critical technology US businesses with existing export control regimes, which could subject new categories of investments and foreign investors to mandatory review by CFIUS once the proposed regulations become effective. It says that the proposed regulations would require parties to adjust due diligence procedures early in the life cycle of a transaction by shifting from an industry-level analysis of the US business to instead account for the export controls governing the target’s sensitive technologies to the foreign parties to the transaction.

https://www.jonesday.com/en/insights/2020/06/cfius-to-base-mandatory-critical-technology-reviews-on-export-control-criteria

 

 

 

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Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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