The Department of the Treasury rolled out a regulation package on Wednesday which granted the Committee on Foreign Investment in the United States the authority to review a much larger scope of deals with overseas funds. The shift, emanating from recently passed legislation, is part of efforts by the government to protect technology which has strategic significance for the nation. The initiative seems particularly aimed at China and partnerships and investments from there which have raised eyebrows within the administration and among lawmakers in Washington for the potential theft of intellectual property.
Foreign entities must now submit contracts for analysis in 27 business areas, with the focus on computer chips, telecommunications and defense. Earlier, reviews weren't obligatory though investors would file documents just to be sure and not to risk hitting a wall much further in the process. CFIUS used to look only at transactions for majority stakes.
