Tag: CFIUS

CFIUS probing past Chinese investment

The letters, which began landing in dozens of companies’ email inboxes in the spring, reflect the broadly held view among U.S. officials and lawmakers that the United States failed in recent years to adequately screen investments pouring in from China and other countries — particularly low-profile venture-capital investments that didn’t make the headlines. The 2018 Foreign Investment Risk Review Modernization Act, or FIRRMA, aimed to address that by boosting CFIUS’s funding and powers.

Tech executives say the inquiries are part of a growing chill in U.S.-China relations that has made Silicon Valley companies more cautious about accepting foreign investments and caused some China-backed venture-capital funds to curb their activity.

The decoupling can be seen in data showing that Chinese venture-capital investment in the United States dropped to a six-year low in the first half of 2020, to $800 million, according to research provider Rhodium Group. VC investment by U.S. firms

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Trump’s TikTok Tactics Provoke China Countering CFIUS As New Data Portend Decoupling

President Trump’s flailing decision-making about the future ownership and U.S. operations of the Chinese firm ByteDance’s TikTok app marks a stark departure from the century-long era of the U.S. serving as the global beacon for certainty and clarity of nations’ policies toward foreign investment.  

Regardless of one’s stance on whether or not TikTok represents a national security threat to the U.S., it is hard to argue our economic growth does not hinge on investors—both domestic and foreign, regardless of geography—possessing confidence in the economic policy stability of the U.S. 

Not only did the President’s seemingly contradictory actions on the matter—including debasing the outcome of long run, systemic investigation of TikTok by the interagency Committee on Foreign Investment in the US (CFIUS) in favor of a tactic to issue an ad hoc Executive Order—worsen the risk profile of investing in the U.S., but they energized China

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