In this news, we discuss the Factbox: U.S. government panel cracks down on Chinese deals.
(Reuters) – President Donald Trump has raised hurdles for Chinese companies looking to invest or raise funds in the United States, which will have a lasting impact even if he does not win a second term, negotiators and policy experts.
The Committee on Foreign Investment in the United States (CFIUS), an interagency group that examines foreign investment for potential national security risks, has tightened its scrutiny of Chinese agreements under President Donald Trump.
Here’s how CFIUS started to flex their muscles over the past four years:
– Agreements awaiting CFIUS review piled up after Trump took office in January 2017, as the government struggled to hold key mid-level political positions in several of the 16 ministries and agencies governments that make up CFIUS.
– In September 2017, Trump blocked the planned $ 1.3 billion acquisition by China-backed private equity firm Canyon Bridge of U.S. chipmaker Lattice based on a recommendation from CFIUS.
– In January 2018, CFIUS blocked a plan by Chinese financial technology giant Ant Group to acquire U.S. money transfer company MoneyGram International Inc MGI.O for $ 1.2 billion.
– In April 2018, Chinese conglomerate HNA Group abandoned its bid for most of SkyBridge Capital, an investment firm founded by former Trump aide Anthony Scaramucci, following CFIUS ‘rejection.
– The Foreign Investment Risk Review Modernization Law (FIIRMA) was enacted in August 2018, expanding the scope of CFIUS reviews to include unrestricted investments and real estate transactions.
– In early 2020, the Chinese games company Beijing Kunlun Tech Co Ltd 300418.SZ sold Grindr LLC, a popular gay dating app purchased in 2016, for $ 620 million after being ordered by CFIUS to divest.
– In August 2020, Trump commissioned the Beijing ByteDance from China Technology cede TikTok, citing national security concerns. Trump said in September that a preliminary deal for Oracle Corp ORCL.N and Walmart Inc WMT.N to take stakes in TikTok had its “blessing.” The deal was not finalized after ByteDance said it would not give up a controlling stake in TikTok.
Reporting by Kane Wu in Hong Kong and Echo Wang in New York; Editing by Sumeet Chatterjee and Christopher Cushing
Original © Thomson Reuters