Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

U.S. unveils plans to extend scrutiny of foreign investment

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/17/2019 | 11:34pm EDT
FILE PHOTO: The U.S. Capitol Building is shown at sunset in Washington

WASHINGTON (Reuters) - The U.S. government outlined more detail on Tuesday on its plans to beef up foreign investment oversight, including a proposal to permit the blocking of some foreign purchases of real estate within 100 miles (160 kilometres) of military bases.

U.S. Treasury is laying out proposed rules to extend the powers of the Committee on Foreign Investment in the United States, or CFIUS, which has increasingly flexed its muscles against Chinese companies.

Laws passed last year gave CFIUS the power to review foreign investment in critical technologies, infrastructure and sensitive personal data - even when a buyer is not seeking a controlling stake in a U.S. firm.

The proposals on Tuesday from Treasury, which leads CFIUS, provide more detail on how it plans to do that, with finalised rules due to take effect early next year after public consultation.

Proposals include allowing CFIUS to scrutinize bids by foreigners to purchase property located within 1 to 100 miles of military installations or sensitive government facilities.

Under another proposal, a mandatory filing requirement would be triggered when foreign governments had at least a 49 percent stake in the companies seeking to invest in the United States.

Intervention by CFIUS, which reviews mergers and stock purchases to ensure they do not harm national security, has already helped to slow Chinese investment in the United States dramatically, as Beijing and Washington remain locked in a heated trade and technology dispute.

CFIUS can block transactions or require parties to ink deals ensuring, for example, that the foreign firm has no access to sensitive technology being developed by the American company it is seeking to invest in.

In October, a pilot program went into effect requiring mandatory filings for foreign companies seeking stakes in U.S. firms in 27 key industries including telecommunications and semiconductors.

OPEN FOR BUSINESS

However, Treasury officials on Tuesday sought to downplay fears that the rules would unduly stifle foreign investment, noting that no countries would be "blacklisted."

"The United State remains open for business but not at the risk of national security," a Treasury official said. "To the extent that a transaction poses a risk, it is something that we want to look at," he added.

Mark Plotkin, a lawyer based in Washington D.C., said the rules showed regulatory restraint.

Plotkin pointed out that many CFIUS watchers had expected the threshold for mandatory filing to be well below the proposed 49 percent, which would have triggered filing requirements for many Chinese companies in which Beijing has a 10 to 20 percent stake.

The message that CFIUS is sending "is that we're trying to be very deliberate about how we tailor these regulations because we don't want to scare off foreign investment," he added.

A limited list of foreign states exempt from CFIUS review when companies are seeking a non-controlling stake will also be released no later than the publication of the final rules, due in February, 2020. The public will have until Oct. 17 to comment on the proposals.

(Reporting by Alexandra Alper, Additional Reporting by Chris Sanders and David Lawder; Editing by Jonathan Oatis and Jane Wardell)

By Alexandra Alper

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:11pBoeing pilots' messages on 737 MAX safety raise new questions
RE
06:11pASRT AMERICAN SOCIETY OF RADIOLOGIC TECHNOLOGIST : Vacancy Rates Rise for Radiographers
PU
05:56pBANK OF JAMAICA : Press Release Bank of Jamaica Intervenes in the FX Market - Results - 18 October 2019
PU
05:36pFAA turns over emails from former Boeing 737 pilot
RE
05:34pLira may be Turkey's Achilles heel in Syria battle
RE
05:26pUtilities Up On Defensive Bias -- Utilities Roundup
DJ
05:26pCommunications Services Down On Defensive Bias -- Communications Services Roundup
DJ
05:23pTech Down Amid Trepidation On Global Growth -- Tech Roundup
DJ
05:22pFinancials Up On Brexit Bets -- Financials Roundup
DJ
05:21pWall Street pressured by global growth concerns
RE
Latest news "Economy & Forex"