Home > Legal Updates > InsightsPresident Trump Adds Teeth to CFIUS Bite: Chinese Company Ordered to Divest Acquisition of U.S. Hotel-Software Company

InsightsPresident Trump Adds Teeth to CFIUS Bite: Chinese Company Ordered to Divest Acquisition of U.S. Hotel-Software Company

The U.S. Department of the Treasury finalized the new Committee on Foreign Investment in the United States (“CFIUS”) regulations, which became effective on February 13, 2020.[1]

Amongst other matters, the new regulations significantly expand CFIUS’s jurisdiction for non-controlling investments, including the review of transactions involving U.S. businesses that manage or collect “sensitive personal data” of U.S. citizens. Notably, section 721 of the Defense Production Act of 1950, authorizes CFIUS’s jurisdiction to review covered transactions for national security implications, and enumerates the President’s authority to “suspend or prohibit any covered transaction that threatens to impair the national security of the United States.” Read more…