Tighter US foreign investment rules that target China start in November
The 27 industries that will have tightened US rules on foreign investment include telecommunications and semiconductors as well as aircraft manufacturing, aluminium production, guided missiles and other military equipment
The US federal government will tighten rules on foreign investment in sensitive industries such as technology and telecommunications next month, the Treasury Department said on Wednesday, as it starts to enforce a law aimed at curbing Chinese investment in 27 sensitive sectors.
The Committee on Foreign Investment in the United States (CFIUS) reviews mergers and stock purchases to ensure they do not harm national security. It was strengthened by legislation in the National Defence Authorisation Act that was signed into law in August.
Much of the panel’s highest profile work focuses on Chinese companies, many with government links, which have tried to buy US high-end semiconductor makers and other tech companies.
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The 27 industries include telecommunications and semiconductors as well as aircraft manufacturing, including engines and engine parts, aluminium production, computer storage devices, guided missiles and other military equipment.
Investments in these sectors must be reported to the committee if the foreign investor’s role would allow access to non-public information or afford power to nominate a board member or make other substantial decisions, the department said.
CFIUS will have the option to approve a deal within 30 days or open a fuller investigation, the department said.