Foreign Direct Investment

One week after China’s largest state-run food and agriculture company announced its acquisition of a grain terminal in Cahokia, Illinois, a bipartisan pair of U.S. House members from Illinois urged Treasury Secretary Janet Yellin to conduct “an immediate review of the acquisition to weigh the consequences for America’s national security and the region’s agricultural economy.” 

On June 21, 2024, the Department of the Treasury issued a Notice of Proposed Rulemaking (NPRM), “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern.” The NPRM builds on the Advance Notice of Proposed Rulemaking (ANPRM) issued in August 2023 in response to President Joseph Biden’s Executive Order 14105

Key Notes:

  • The Department of Commerce’s Bureau of Economic Analysis requires the reporting of certain statistical data on foreign direct investment in the United States. This includes reporting data when a foreign entity acquires a U.S. business, when a foreign entity or its existing U.S. affiliate establishes a new legal entity, or when an existing

On Saturday, March 9, 2024, President Biden signed a six-bill appropriations package to fund the U.S. government through September 30, 2024.  In doing so, he codified a notable trade-related policy rider that adds the Secretary of Agriculture “on a case by case basis” to the Committee on Foreign Investment in the United States (“CFIUS” or

Key Notes:

  • The Department of Commerce Bureau of Economic Analysis is conducting a five-year benchmark survey of incorporated U.S. businesses of which a foreign person or entity owns or controls, directly or indirectly, 10% or more of the voting securities (or an equivalent interest if an unincorporated U.S. business) as of the business’s 2022 fiscal

Pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), the Committee on Foreign Investment in the United States (CFIUS) established the concept of “excepted foreign state[s],” defined as those states with compliance laws, orders and regulations similar to those of the United States concerning foreign investments assessed for national security purposes.  See

Key Notes:

  • Real estate projects may be subject to CFIUS national security review if close to sensitive locations.
  • Proactive planning can mitigate transaction delays.
  • Security concerns may be broader than CFIUS regulatory issues and merit multi-tiered government and public outreach.

The Committee on Foreign Investment in the United States (CFIUS) recently reviewed a proposed real

Key Notes:

  • The Treasury Department recently released guidelines specifying conduct that may be considered a violation of CFIUS regulations.
  • The guidelines provide information about how CFIUS gathers information and the formal penalty process.
  • They also indicate factors that CFIUS may consider in making an enforcement determination, including aggravating and mitigating factors.

On September 15, 2022,