New Treasury program limits foreign investment in US technology
On 10 October 2018, the U.S. Department of the Treasury, as chair of the Committee on Foreign Investment in the United States (CFIUS), adopted a pilot program to protect critical American technology and intellectual property from potentially harmful foreign acquisitions. It will become effective on 10 November 2018.
The pilot program is part of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which has been adopted in August 2018 and which will be fully implemented no later than February 2020. The program also expands the scope of transactions subject to CFIUS review to include certain non-controlling foreign investments in U.S. businesses involved in critical technologies related to specific industries. Twenty-seven industries will come under tougher scrutiny, including telecommunications, semiconductors and computers.
Moreover, the Treasury issued another temporary regulation - the Provisions Pertaining to Certain Investments in the United States By Foreign Persons, effective as of 11 October 2018. They set forth amendments to the regulations and clarify the current process and procedures with respect to the reviews and investigations undertaken by CFIUS.
Type: Entry and establishment (Approval and admission)
Industry: Services (Other professional, scientific and technical activities, Public administration and defence; compulsory social security)
- U.S. DEPARTMENT OF THE TREASURY, Treasury Releases Interim Regulations for FIRRMA Pilot Program, Oct 10, 2018
- U.S. DEPARTMENT OF THE TREASURY, Provisions Pertaining to Certain Investments in the United States By Foreign Persons, Oct 04, 2018