Treasury wants to boost foreign investment review powers, as Congress dissects Nippon, TikTok deals

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United States Government أخبار

Japan Government,China Government,U.S. Department Of The Treasury

U.S. Treasury wants to enhance the power of a little-known, secretive government committee to review deals made between U.S. firms and foreign investors.

U.S. Treasury Secretary Janet Yellen speaks during the AmCham China Fireside Chat held at the Baiyun International Conference Center in southern China’s Guangdong province, Friday, April 5, 2024.Japanese Prime Minister Fumio Kishida speaks during a news conference with President Joe Biden in the Rose Garden of the White House, Wednesday, April 10, 2024, in Washington.

The rulemaking — if finalized — would expand the committee’s subpoena authority, allow the committee to request more information from parties to a proposed sale and expand circumstances when fines can be imposed and their size — from $250,000 to $5 million, where there are misstatements, omissions and failure to file mandatory declarations.

Treasury’s Assistant Secretary for Investment Security Paul Rosen said the rulemaking is meant to “more effectively deter violations, promote compliance and swiftly address national security risks in connection with CFIUS reviews.” “The announcement today is all about adding tools for them to investigate and more actively and aggressively enforce their authorities,” he said. He added that it was going “to act as an incentive for people to really scrub deals to see whether or not they need to file.”Another deal under CFIUS review is the ownership of popular social media app, TikTok. CFIUS’ review of the social media app goes back at least to 2019, though no movement has been made on that review. The U.S.

 

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