US unveils plans to extend scrutiny of foreign investment

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The U.S. government outlined more detail on Tuesday on its plans to beef up foreign investment oversight, including a proposal to permit the ...

WASHINGTON: The US 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 160km of military bases.

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. Under another proposal, a mandatory filing requirement would be triggered when foreign governments had at least a 49 per cent 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.

In October, a pilot program went into effect requiring mandatory filings for foreign companies seeking stakes in US firms in 27 key industries including telecommunications and semiconductors.However, Treasury officials on Tuesday sought to downplay fears that the rules would unduly stifle foreign investment, noting that no countries would be"blacklisted".

 

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