Attorney Authored
How Will The Incoming Biden Administration Impact Your Business?
December 15, 2020
Paul Hastings
In this year marked by so much uncertainty, the U.S. election was closely followed by people throughout the world. President-elect Biden promises to bring significant changes that will impact businesses and industries both in the U.S. and internationally. As we look ahead to January 2021 and beyond, we asked our lawyers around the globe to share their insights on what the Biden administration will mean for our clients when it comes to:
Deal-making in the U.S. and Across Borders
Thad Malik
Partner and Chair
M&A Practice
Chicago
Anu Balasubramanian
Vice Chair
Private Equity Practice
London
“The Biden campaign focused on fiscal changes which would principally affect U.S.-domiciled private equity (PE) funds, particularly in relation to corporate and capital gains taxation. The impact of his victory on European funds and in the European buy-out market, at least in the immediate term, is more difficult to discern. Many international funds are likely to welcome an administration which will be more predictable than its predecessor, especially on international trade and the easing of relations with China. This will have a markedly positive impact on cross-border activity.
“Managing the COVID crisis will be a key focus of the Biden administration and this is likely to have a corresponding impact on deal-making in the healthcare industry. With increased antitrust scrutiny in the U.S., mergers between healthcare providers are likely to face stiffer resistance, opening the doors for more PE investment. Similarly, Biden’s green credentials are likely to increase demand for sustainable energy assets, which the PE industry is well placed to capitalize on.”
Mei Lian
Partner
Finance and Restructuring
London
“The election uncertainty has resulted in considerable market volatility. I think we would expect a return to stability in the U.S.-EU relationship, but some increased uncertainty for the UK in terms of a trade deal with the U.S. The long-term effects on cross-border finance transactions will depend on President-elect Biden’s ability to implement his policies, and the resulting impact on M&A activity. Overall, however, the continued low interest rate environment and availability of capital will mean that deals will continue to be done, hopefully with increased cross-border activity, albeit with one eye to the proposed changes, such as tax hikes, and with a focus on certain sectors, such as infrastructure and clean energy.”
Neil Torpey
Partner
Corporate Practice
Hong Kong and New York
“The incoming Biden Administration is expected to bring a return to relative normalcy, a less confrontational and more globalist approach to international and business relations, and, accordingly, an incrementally positive impact on cross-border deal-making. We are in a period of dramatic change around the world. New technologies have fundamentally changed many aspects of commercial and everyday life—and businesses everywhere are working through myriad challenges posed by a global pandemic and consequent economic dislocations. Investors have nearly unlimited capital (including their own highly-valued stock) to deploy, as well as inexpensive and easily-accessed debt available to use in executing deals and—in many cases—a willingness to hunt for targets around the world. Many companies are struggling, needing capital or an acquirer to survive. So there are conditions in many places and industries that are very favorable for deal-making in the coming several years—irrespective of who is in office in the U.S. and elsewhere.”
Jong Han Kim
Partner
Corporate and
Litigation Practices
Seoul
“One of President-elect Joe Biden’s top priorities will be to pursue energy policies that will help the U.S. achieve a cleaner energy economy and net-zero emissions by no later than 2050. This coincides with the new economic initiative announced by South Korean President Moon Jae-in, called the Korean New Deal, which focuses on converting the Korean economy into a low-carbon economy. As the two governments’ timely initiatives pursue similar objectives, I expect significant cross-border business activities in this field. In particular, I anticipate increased M&A deals involving clean energy technologies, including electric and hydrogen-fueled automobiles, rechargeable batteries, solar and wind power, and emissions reduction.
“The impact of the Biden administration will be generally positive. There will likely be more corporate transactions in Asia, particularly those involving China. TPP-type trade enhancements are also expected, which would accelerate the pace of trade volume and growth in the region.”
Regulatory Enforcement and Investigations
Scott Flicker
Chair
Global Trade Controls Practice
Washington, D.C.
There are a number of regulatory areas in which we should expect to see an uptick under a Biden Administration. When it comes to financial services regulation and investigations, not only will we see a greater focus on consumer protection/fraud, but we also should see increased regulation of cryptocurrencies and commodities trading activities, renewed investigation in market rigging, anti-money laundering, sanctions and anti-corruption focused on financial services. Securities law enforcement will also pick up. In addition, I would expect an increase in merger investigations, as well as a renewed focus on cartel activities. However, it remains to be seen whether monopolization actions against large data-driven companies (like the Google antitrust case) will be continued or curtailed. Lastly, the U.S.-China technology and strategic rivalry is not going away. While the U.S. will scale back tariff- and other trade-remedy action, export controls, trade secret theft prosecutions, human rights-based sanctions and other actions will continue.
Shaun Wu
Partner
Investigations and
White Collar Defense
Hong Kong
“Much discussion now is focused on whether a Biden administration will provide more certainty and predictability on U.S. policies on China over the next four years. However, a change in administration does not necessarily mean that the new administration will be weak on enforcement and sanctions affecting Chinese companies. Regulatory scrutiny of Chinese involvement will likely continue, especially in the areas of technology, telecommunications, and network infrastructure. There may be more predictability in the process, but the same issues remain, for instance in national security and data privacy. It may also be that the new administration might take a more multilateral approach, rather than necessarily singling out a particular country or territory. We may see a return to more conventional enforcement against Chinese companies by the Department of Justice (DOJ), though by no means less intense.”
Nathan Sheers
FDA Regulatory and Enforcement
Washington, D.C.
Peter Lindsay
FDA Regulatory and Enforcement
Washington, D.C.
“The U.S. Food and Drug Administration (FDA) has been busy reviewing hundreds of Emergency Use Authorization applications, and numerous COVID-19 vaccine and therapeutic treatments, and that focus will continue. However, under the Biden Administration, new FDA leadership will use the agency’s enforcement powers to move beyond the current focus on fraudulent COVID products and will select targets to remind the industry of the FDA’s key quality and public safety goals, even as it continues to prioritize pandemic-related issues. Certain enforcement powers will likely receive even more attention, such as consent decrees and import alerts. Now would be a good time for companies to proactively ensure they don’t become an illustrative enforcement target.”
“Additional areas of focus for the FDA under the new administration will be cell and gene therapies, where the agency will insist on vigilance for Chemistry, Manufacturing, and Control issues throughout the cell and gene therapy lifecycle, and medical devices, where the FDA will continue to focus on device safety and digital health policy.”
The U.S. Capital Markets and the Securities and Exchange Commission
Christopher Austin
Partner
Securities and Capital Markets
New York
Nick Morgan
Partner
Investigations and
White Collar Defense
Los Angeles
“When it comes to leadership changes at the U.S. Securities and Exchange Commission (SEC), presidents seem to want to make a splash with someone who sends a strong message. President-elect Biden could send the message that he intends to be tough on Wall Street by naming a former U.S. attorney to the SEC chairmanship. Given Preet Bharara’s history with President Trump, he seems like a likely candidate. Another solid candidate would be U.S. District Judge Valerie Caproni in the Southern District of New York, who formerly led the SEC’s Los Angeles office.”
Data Privacy and Cybersecurity across Borders
Sherrese Smith
Partner and Vice Chair
Privacy and Cybersecurity Practice
Washington, D.C.
U.S.-UK Relations
Arun Srivastava
Partner
Corporate Practice
London
Environment, Social and Governance
Runjhun Kudaisya
Of Counsel
Private Investment Funds Practice
New York
Energy and Infrastructure
Chris Carr
Partner
Energy and Environmental Practice
San Francisco
Federal Employment Law
Cameron W. Fox
Partner
Employment Law Practice
Los Angeles
Felicia Davis
Partner
Employment Law Practice
Los Angeles
“I would not be surprised to see an increased focus on pay equity issues under the Biden administration. Vice President-elect Kamala Harris put forward an aggressive pay equity proposal during her campaign for President. While we do not know if the President-elect or Vice President-elect will attempt to advance new federal pay-related legislation once they take office, I expect that under a Biden administration, pay equity will again become a focus of the federal agencies.”
Cross-Border Tax
Arun Birla
Partner
Tax
London