How Chinese buyers of US tech can get deals done under tighter US scrutiny
A bipartisan group of lawmakers in the US Congress unveiled bills to toughen US foreign investment rules amid growing concern about Chinese deals
Chinese buyers need to get ahead of the US foreign investment review process as Washington moves to tighten scrutiny of offshore acquisitions of US companies, particularly tech firms, observers say.
A bipartisan group of lawmakers in the US Senate and House of Representatives introduced bills on Wednesday to toughen US foreign investment rules amid growing concern about Chinese deals.
Senator John Cornyn, a member of the Republican leadership who is on the Senate Intelligence Committee, introduced a Senate bill to broaden the government’s power to stop foreign purchases of US firms by strengthening the Committee on Foreign Investment in the United States (CFIUS).
Rep. Robert Pittenger, a North Carolina Republican, introduced an identical bill in the US House of Representatives.
The proposed expansion of CFIUS’s powers is being driven by growing worries in Washington about national security risks and the fear of the US losing its technological edge as China steps up development of home-grown technology and acquisition of US technology to become a global innovation leader.
As the US review process tightens, “Chinese companies have to do more work up front”, said Daniel Rosenthal, a Washington-based associate managing director with global risk consultancy Kroll.