Morrison & Foerster partner Chuan Sun explains the new CFIUS rules and the impact that they could have on Chinese companies in the China Daily article “U.S. Treasury Rules Worry Investors.”
“It has expanded CFIUS’s mandate to non-controlling investments . . . that may give foreign investors access to nonpublic technical information necessary to design, develop, test, produce or manufacture critical technologies,” Sun said.
Mr. Sun also advised that the new rules would cover giving foreign investors “membership or an observer seat on a company’s board or any involvement in major decision-making that relates to the use, development, acquisition or release of critical technologies.”