U.S. government scrutiny of Chinese investment has been commonplace for almost as long as the Committee on Foreign Investment in the United States (CFIUS) has existed. During the Trump administration, CFIUS failed to approve approximately half of all Chinese deals it reviewed. During the Obama administration, however, close to 95% of reviewed Chinese deals were approved — though concerns regarding Chinese investment in the U.S. had become a largely bipartisan issue by the end of Obama’s second term, with Obama personally blocking two Chinese transactions.

Given this, Chinese investors who expect CFIUS scrutiny to abate under President Joe Biden could be in for a costly surprise. Government oversight of Chinese-led deals is expected to remain rigorous and could have a significant impact on transaction ROI.

In Law360, Scott Boylan and Paul Stephen outline the steps Chinese investors and their legal teams should undertake to proactively meet CFIUS’ expectations.

Read the full article.

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About the Authors

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Scott Boylan

Scott Boylan, a Partner with StoneTurn, has more than 30 years of experience in advising public- and private-sector organizations on a broad range of international legal and business issues, including […]

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Paul Stephen

Paul Stephen, a Manager with StoneTurn, has extensive experience in compliance and monitoring, and investigations. He has worked on diverse engagements including anti–money laundering, anti–bribery and corruption, due diligence, sanctions […]

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