The NY Times Fiday, June 19, 2020, B6 “Europe Takes Steps to Block Chinese Bargain Hunters”.
Europe is doing too little too late to block Chinese investors (backed by government that provides financial support and subsidies) to snap up distressed European companies at bargain prices. It can borrow much from the U.S. which has been way ahead.
We draw attention to changes in US regulatory environment for foreign deals in the Trump presidency. The national security landscape has shifted in recent years, and so has the nature of the investments that pose the greatest potential risk to national security. Recent amendments to the Committee on Foreign Investment in the United States (CFIUS) process now brings significant hurdles to foreign investment in ‘sensitive’ sectors. The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) was signed into law after receiving broad bipartisan support in Congress and new regulations are expected. We provide historical context, highlight recent evolution and provide color on consummating such transactions.