Mubasher: The US Treasury Department proposed new regulations on foreign investment in US companies, with access to critical technology and sensitive infrastructure as well as personal data.
Such regulations would implement a congressionally mandated overhaul of the national security reviews on some takeovers of US businesses by foreign companies.
The proposed rules would provide the Committee on Foreign Investment in the US (CFIUS) new jurisdiction over certain non-controlling investments into American companies operating in the fields of critical technology and infrastructure, the Treasury said on Tuesday.
Moreover, the CFIUS would also have the jurisdiction over certain transactions on real estates with foreign firms and nationals.
It is worth pointing out that the CFIUS is an interagency committee led by the Treasury, which reviews the national security threats, in the acquisition of US assets by foreign investors.
“Today’s proposed regulations will provide clarity and certainty to investors regarding CFIUS’s enhanced authorities to address national security risks that arise from certain foreign investments, and continue modernizing the CFIUS process,” Treasury Secretary Steven Mnuchin said.
The proposal is subject to public commentary until 17 October, and the final draft would come into force in February 2020, if approved, the Treasury noted.