Morrison & Foerster’s partner Ruomu Li was quoted in the Dealreporter article “Chinese buyers of US assets face rising risks but non-notification of some deals will remain possible” on how Chinese outbound buyers of U.S. assets are facing greater risks in light of the increased scrutiny of non-filed deals by CFIUS.
CFIUS is increasing resources it devotes to reviewing non-filed deals, and the regulator’s post-closing investigations have resulted in three Chinese buyer groups being told to back out their investments in companies that involve sensitive data. “The three cases have highlighted the degree to which sensitive personal data is an area of heightened concern for CFIUS. This could have negative implications on Chinese appetite for certain industries that have not drawn CFIUS’ attention in the past, e.g. US education targets as these targets typically have access to student data.” Ruomu commented.