For the most part, CFIUS only has jurisdiction to review foreign investment in existing US businesses, often referred to as cross-border mergers and acquisitions (M&A) or brownfield investment. Its inability to review most greenfield investments, or foreign investments that establish a new business, is purposeful.
torsdag 1. august 2024
China’s ability to buy US land near military bases just got more restricted
In early June, the US Treasury Department announced a proposed update to Committee on Foreign Investment in the United States (CFIUS) rules that would expand the committee’s jurisdiction over foreign real estate purchases. These new rules were announced after several recent high-profile and controversial planned property purchases by initially undisclosed or Chinese buyers, a growing number of state-level restrictions on foreign real estate investments, and increased congressional scrutiny on greenfield investment. These new proposed rules come on the heels of increasing concerns over Chinese investment in US real estate near sensitive locations, such as near military bases. Moreover, the proposed update could presage an expanded interpretation of CFIUS jurisdiction to include certain greenfield investments.
For the most part, CFIUS only has jurisdiction to review foreign investment in existing US businesses, often referred to as cross-border mergers and acquisitions (M&A) or brownfield investment. Its inability to review most greenfield investments, or foreign investments that establish a new business, is purposeful.
For the most part, CFIUS only has jurisdiction to review foreign investment in existing US businesses, often referred to as cross-border mergers and acquisitions (M&A) or brownfield investment. Its inability to review most greenfield investments, or foreign investments that establish a new business, is purposeful.
