Foreign Investment in the United States/Doing Business
Academic Research, CFIUS, China Initiative, Emerging Tech Law & Policy, Foreign Influence in Academia, National Security Law, Tech War
Senate Bill Would Extend CFIUS to Academia
Hdeel Abdelhady's recent article on the Strategic Competition Act's proposed expansion of CFIUS' jurisdiction to foreign funding of U.S. colleges and universities is available at Law360.
Academic Research, CFIUS, Tech War, Technology Export Control, Technology Transfer, United States China Law and Policy
Strategic Competition Act Would Subject Foreign Funding of U.S. Universities to CFIUS Review
Several pieces of legislation are pending in Congress to more comprehensively shore up the U.S. position in the U.S.-China technology race. The Strategic Competition Act of 2021 illustrates clearly the official U.S. view of academia’s role in the U.S.-China technology race, and the links between U.S. policies and legal measures to regulate foreign access to U.S. science and technology within and across the private, public, and academic sectors.
CFIUS, Doing Business in the United States, Foreign Investment in the United States, Sanctions, Tech War, Technology Export Control, United States China Law and Policy
Post-2020 Election Outlook: 5 Issues to Keep Watching
After the 2016 Presidential election, MassPoint PLLC published five issues to watch in 2017 (and beyond). We revisit our predictions on the five issues, which we expect to remain watch-worthy under the Biden Administration.
CFIUS, Foreign Investment in the United States, National Security Law, Tech War, Technology and Human Rights, United States China Law and Policy
TikTok: China’s Export Controls Set in Motion Unprecedented Legal Scenario
On August 14, President Trump ordered ByteDance to divest its assets and interests in TikTok. What happens if ByteDance does not comply? The question may seem academic, given historical compliance with divestment orders and ByteDance’s talks with U.S. companies about TikTok’s sale. But a recent legal move by China—its expansion of a list of technologies that require government approval for export, including apparently in a sale of TikTok—renders real the issue of non-compliance with the August 14 divestment order, and potentially raises unprecedented issues.
Academic Research, China Initiative, Emerging Tech Law & Policy, Foreign Influence in Academia, Foreign Investment in the United States, National Security Law, Tech War, Technology Export Control, Technology Transfer, United States China Law and Policy
U.S. Restrictions on International Tech Transfer in Academia, Business, Trade
U.S. Controls Over Foreign Access to and Influence on Technology and Research in 2020: A Quick Guide U.S. companies, academic and research institutions, and individuals are facing greater scrutiny and…
Doing Business in the United States, Foreign Investment in the United States, National Security Law, Tech War, Technology Transfer, United States China Law and Policy
CFIUS Orders Grindr’s Chinese Owner to Divest
Is a dating app a national security asset? Yes, in some cases. Foreign investment in U.S. businesses that collect and maintain U.S. citizens’ sensitive personal data is subject to national security reviews by CFIUS. From social networking to financial services to healthcare to consumer retail, companies across sectors collect, maintain, and have access to the sensitive personal data of U.S. citizens. The implications of the personal data-national security nexus are potentially wide-ranging for foreign investment in U.S. businesses.
CFIUS, China Initiative, Emerging Tech Law & Policy, Foreign Influence in Academia, National Security Law, Tech War, Technology Export Control, Technology Transfer, United States China Law and Policy
U.S.-China Tech War: Whole of Government Legal Strategy
The U.S. government has adopted and is implementing a “whole-of-government” strategy to counter China. The whole-of-government approach entails a range of legal and policy measures to curb China’s access to U.S. technology, by lawful and unlawful means. These measures include, but are not limited to, stricter curbs on foreign investment in U.S. technology; restrictions on exports of “emerging technologies” like artificial intelligence; exclusions of Chinese firms from U.S. government and private supply chains through company bans; prosecutions of intellectual property theft; measures to counter “academic espionage” in American academic and research institutions; and, indirectly, and, indirectly, sanctions enforcement.
Critical Minerals, Doing Business in Emerging Markets, Doing Business in the United States, Foreign Investment in the United States, Global Magnitsky Sanctions, MassPoint Legal and Strategy Advisory PLLC, MassPoint News, National Security Law, Sanctions, United States China Law and Policy
Event: Critical Minerals, National Security, and Supply Chains
Now that the Trump Administration has declared a policy to reduce dependency on foreign sources for critical minerals, how will the Administration go about achieving its stated objective? What legal consequences—including in the areas of national security, trade, anti-corruption, and environmental law—might flow? Our multi-disciplinary panel will discuss the science and practical importance of “critical minerals,” recent and potential U.S. legal and policy developments, and the potential impacts of U.S. actions on minerals on manufacturing, supply chains, and the markets.
CFIUS, Emerging Tech Law & Policy, Export Controls, Hdeel Abdelhady Articles, Tech War, United States China Law and Policy
Brain Drain: Emerging Technologies Export Controls Could Spur Tech Inversions
The Department of Commerce, Bureau of Industry and Security, has begun the process of identifying "emerging technologies" that are essential to national security and, consequently, require export control. New export controls on emerging technologies could be burdensome, depending on the content of regulations and the manner of their enforcement. If the new regulatory regime is burdensome to the point that it prohibits (legally or practically) some emerging technology transfers to foreign parties, companies and others involved in emerging technologies-- particularly their development--may seek arrangements, without evading or otherwise violating ECRA or applicable regulations, to ease collaborations and other engagement with foreign parties, including by some form of technology inversion.
Sovereign Wealth Funds: Governance & Risk for SWFs and Companies They Fund
Private companies that receive SWF and SOE investment, as well as the investors who arrange or co-invest with state-linked firms, should, when screening investments and assessing nonfinancial risk before and after the point of investment (and when additional investment is under consideration), the quality and risk inherent in the corporate structure and governance, as well as the business conduct controls of SWFs and SOEs, may affect them in the near- to longer term. In doing so, they should take a lesson from the PIF situation, post-Khashoggi.
Academic Research, CFIUS, Emerging Tech Law & Policy, Export Controls, Hdeel Abdelhady Articles, National Security Law, Tech War, Technology and Human Rights, Technology Export Control, United States China Law and Policy
Tech Wars: Restrictions on Foreign Access to U.S. Technology
Measures to curb foreign access to U.S. technology have taken and will likely take various forms that will cut across industries and legal disciplines. Among them, as discussed below, are restrictions on foreign access to and influence on U.S. technology through (1) foreign investment, (2) supply chain exclusions, (3) limits on participation in academic and other research, (4) legal or political curbs on U.S. technology access or transfers through third countries, and (5) countermeasures against foreign control of raw materials essential to technological manufacturing and innovation.
Doing Business in the United States, Emerging Tech Law & Policy, Foreign Investment in the United States, Hdeel Abdelhady Articles, Sanctions, Technology Export Control, Technology Transfer, United States China Law and Policy
U.S.-China Trade and Tech War on Three Fronts
Much of the talk of trade war between the United States and China, and perhaps other countries, has focused on traditional trade measures and counter-measures like tariffs that strike at the core of international trade: most basically, the movement of goods and services across international borders. But there are two additional fronts of a U.S.-China trade war (thus far): intellectual property and the use of U.S. sanctions and other laws to "coerce and deter" economic rivals like China.
Doing Business in the United States, Foreign Investment in the United States, Hdeel Abdelhady Articles, MassPoint Legal and Strategy Advisory PLLC, National Security Law, Sanctions, Tech War, Technology Export Control, Technology Transfer, United States China Law and Policy
House Bill “Blocks Bailout” of ZTE After Export Ban
On May 17, the House Appropriations Committee unanimously approved a measure to block the Commerce Department from using appropriated funds to alter the export ban (i.e., the “denial order”) that the agency activated against ZTE on April 15, 2018. The ZTE measure was approved as an amendment to the fiscal year 2019 bill funding the Departments of Commerce and Justice, Science, and Related Agencies (“Commerce Appropriations Bill”), which was approved by the Appropriations Committee on May 17.
CFIUS, Doing Business in the United States, Foreign Investment in the United States, National Security Law
U.S. Senators Raise National Security Concerns About Foreign Investment in U.S. Real Estate
On May 17, 2017, U.S. Senators Ron Wyden (D-OR), Claire McCaskill (D-MO), and Sherrod Brown (D-OH)—respectively ranking members of the Senate Finance; Homeland Security and Government Affairs; and Banking, Housing, and Urban Affairs Committees of the U.S. Senate—asked the Government Accountability Office (GAO) to review the approach taken by the Committee on Foreign Investment in the United States (CFIUS) to foreign investment in U.S. real estate and to "assess whether and how CFIUS addresses the full range of national security challenges such transactions may pose." (The Senators' letter to the GAO is below). Specifically, the Senators have asked the GAO to examine a number of issues aimed at assessing the extent to which applicable regulations and the CFIUS process capture real estate transactions, the percentage of foreign acquisitions of U.S. real estate that have "filed" for CFIUS review, and the information and processes used by CFIUS to assess national security issues raised by foreign acquisitions of U.S. real estate.
Critical Resources, Doing Business in the United States, Foreign Investment in the United States, Hdeel Abdelhady Articles, National Security Law, Sanctions, United States China Law and Policy
After Election 2016: 5 Legal Issues to Watch in 2017
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, and the private sector. Five legal and business issues and dynamics to watch in 2017 are highlighted here.