In February 2020, CFIUS jurisdiction expanded to now reach low-level investments in U.S. businesses dealing with certain critical Technologies, critical Infrastructure, or sensitive personal Data (TID U.S. businesses) and certain real estate transactions, including leases and concessions. In some cases, investors and companies must make mandatory filings for certain businesses in listed U.S. technology sectors and for certain investments by entities with substantial government ownership. While the new rules attract much attention, CFIUS retains its traditional jurisdiction over any foreign (non-U.S.) investment that could result in “control” over a U.S. business, with control often found with less than 20% voting rights. Cutting-edge companies often present heightened risks, especially where technology and data intersect in emerging areas such as gene therapy and precision medicine. At the same time, investors — and particularly investors in China or with government ties — face dramatically increased scrutiny by CFIUS.
Learn from Goodwin’s Global Trade team about the current CFIUS situation, navigating the evolving CFIUS review process, and how expanded CFIUS jurisdiction could affect foreign investors seeking opportunities in the United States and beyond by viewing the webinar below.