House Bill Would Enhance U.S. States’ Iran Sanctions Authority

On July 26, 2017, a bill was introduced in the House that would bolster U.S. states’ authority to impose sanctions on parties that engage in certain business with or in Iran. The State Sanctions Against Iranian Terrorism Act, H.R. 3425, would “amend the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 to secure the authority of State and local governments to adopt and enforce measures restricting investment in business enterprises in Iran, and for other purposes.” Among other measures, the House Bill would expand U.S. states’ authority to impose indirect Iran sanctions by excluding or debarring from state procurement and investments parties that do business in or with Iran, where… Read More

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Identifying UAE “Foreign Officials” for Anti-Corruption Compliance Purposes

Identifying UAE “Foreign Officials” for Anti-Corruption Compliance Purposes Companies and other organizations doing business in the UAE or with enterprises owned in part by a UAE Government party at any level (e.g., the federal/union government or a government of one of the country’s constituent emirates (e.g., Dubai, Abu Dhabi, Ras al Khaimah), or entities owned in part by any of them, should be aware that under UAE law, the definition of “public official” (i.e., a government official) includes employees and directors of enterprises in which a UAE Government party holds less than a majority ownership stake and does not, formally or effectively, exercise control. Definition of “Public Official” Under UAE… Read More

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Public Hearing: Chinese Investment in the United States: Impacts and Issues for Policymakers

  On January 26, 2017, the U.S.-China Economic and Security Review Commission will hold a public hearing on Chinese Investment in the United States: Impacts and Issues for Policymakers. This hearing follows the Commission's November 2016 Annual Report to Congress, in which the Commission recommended, among other things, a bar on investment in the United States by Chinese state-owned enterprises (for background, see MassPoint's November 2016 Business Update, Proposals to Curb Foreign Investment in the United States Gaining Steam After the Election and MassPoint's April 2016 Business Update, Foreign Investment in U.S. Agriculture Under Scrutiny). Hearing background and information (as published by the Commission) "This is the first public hearing the Commission… Read More Continue Reading

After Election 2016: 5 Legal and Business Issues to Watch in 2017

Download Infographic The dismantling of Obama-era laws and regulations, broader deregulation, and economic and political nationalism were and remain themes of the 2016 U.S. Election and presidential transition period. Donald Trump and members of the incoming Republican-controlled Congress have singled out for repeal or significant modification the Affordable Care Act (aka “Obamacare”) and the Dodd-Frank Wall Street Reform and Consumer Protection Act, along with trade, immigration, foreign affairs, and environmental laws, regulations, and policies. If taken, these actions will not only effect legal changes in specific areas, they will create legal and policy voids that may be filled by U.S. states and localities, foreign governments and multilateral and non-governmental organizations,… Read More Continue Reading

Proposals to Curb Foreign Investment in the United States May Be Gaining Steam After the U.S. Election

Pre- and Post-Election Scrutiny of Foreign Investment in the United States, Particularly by Chinese and Other State-Owned Enterprises Major acquisitions of U.S. businesses by foreign firms have in recent years garnered increasing attention and push back in the United States. Acquisitions of U.S. businesses by state-owned enterprises (SOEs), particularly Chinese-owned, and their subsequent commercial activities have generated the most attention and backlash. In response to high value takeovers of U.S. businesses in sectors that have national security value or otherwise touch national interests—such as technology and agriculture—members of Congress, industry associations, and others have demanded, among other measures, modifications to the U.S. national security-based foreign investment review process, carried out… Read More

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Foreign Investment in U.S. Agriculture Under Scrutiny

Foreign Investment in U.S. Agriculture Raising National Security Concerns The 2013 sale of American pork producer and processer Smithfield Foods to China’s Shuanghui International aroused concern among some U.S. lawmakers. The $4.7 billion deal ($7.1 billion including debt), was and remains the largest acquisition of a U.S. business by a Chinese entity. This year, some U.S. lawmakers are again raising concerns about a Chinese firm’s acquisition of an agricultural company: the proposed $43 billion acquisition by state-owned China National Chemical Corporation (ChemChina) of Syngetna AG , the Swiss agrochemicals company that does substantial business in the United States. If completed, the Syngenta deal would “transform ChemChina into the world’s biggest supplier of pesticides and… Read More Continue Reading