South China Morning Post
Chinese tech firms more confident in facing U.S. national security review
Mainland Chinese companies have again set the pace for the most deals placed under national security review by the United States government as many of them, especially technology firms, are now more confident to submit voluntarily amid growing confidence in the U.S. legal process.
Anne Salladin, special counsel in Stroock's National Security/CFIUS/Compliance Practice Group, said, "Filing a notice with Committee on Foreign Investment in the United States (CFIUS), technically, is a voluntary process. But it should be treated as obligatory for sensitive transactions, such as those involving critical infrastructure and technologies." She also noted that the number of Chinese transactions filed in the latest CFIUS report "reflects the continued significant growth of Asian investment in the United States."
Mainland Chinese companies have invested roughly $40 billion in the U.S. since the start of the 21st century, according to a report published last week by the U.S.-China Economic Security and Review Commission. In another report published last week, mainland companies accounted for 21 of the 97 total notices of transactions filed with CFIUS in 2013. By comparison, mainland firms accounted for 23 filings in 2012 and 10 in 2011.
Regarding the report, Chris Brewster, also special counsel in Stroock's National Security/CFIUS/Compliance Practice Group, mentioned that it does not show hostility to investments made by mainland Chinese companies. "Rather, it shows that Asian investors have apparent faith in the U.S. economy – and in the fundamental fairness of the CFIUS process."
Brewster also stated, "Twenty-five years ago, Americans were anxious because Japanese buyers had purchased Rockefeller Center and the Pebble Beach golf resort. But today Japan is close behind China in CFIUS reviews, with 18 – more than the previous two years combined."
To read the article, please click here.