If your organization and its leadership have reached a point where you're considering accepting foreign investment money, what do you need to know about recent changes in foreign investment control laws that might affect your decision making? In this episode, we cover what you need to know about the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) in order to remain compliant with modern foreign investment laws.
Host Michael Cohen is joined by Curt Dombek, a partner in the Government Contracts, Investigations & International Trade Practice Group at Sheppard Mullin. Curt divides his time between the firm's Brussels and Los Angeles offices. He currently serves on the Regulations and Procedures Technical Advisory Committee of the Department of Commerce.
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What We Discuss in This Episode:
What are foreign control regulations and what is the Committee on Foreign Investment in the United States (CFIUS)?
Why does foreign investment in US companies require greater scrutiny than investment in US real estate?
What types of investments trigger mandatory filings under FIRRMA?
What areas of technology fall under the purview of FIRRMA?
How to distinguish passive investments from other involvements that affect more substantive decision making
What led to increased scrutiny and the tightening of security against foreign investments?
Should US companies be concerned with China and Europe seeking to advance in technology?
How the current administration has changed the definition of national security
How are similar investment rules developing in Europe and China?
Is there concern that some country will use "national security" as an excuse to restrict trade?
The 3 areas business executives should pay attention to the most when exploring foreign investments
Resources Mentioned:
US Foreign Investment Act
Foreign Investment Risk Review Modernization Act of 2018
Export Administration Regulations
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
