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Client Alert

Review of China Deals in the U.S.: More, Broader, Stricter

February 03, 2014

BY HAMILTON LOEB & SCOTT M. FLICKER

2014 is shaping up to be a breakout year in the pace and scope of Chinese investment in the United States. With that increased investment activity comes increased U.S. Government scrutiny, by the Committee on Foreign Investment in the United States (CFIUS), of the potential impacts of such deals on U.S. national security and critical infrastructure. Make no mistake: the U.S. market remains the key destination of choice for Chinese companies, and the intelligence and homeland security agencies will be required to adjust to the greater investment flows while continuing to protect U.S. competitiveness and sensitive assets. In this analysis, our Global Trade team takes a close look at recent reports from both CFIUS and a private think tank and concludes that as the Chinese investment activity expands in scope and sophistication, careful preparation, advance anticipation of problems and issues, and fielding an adept team of professionals versed in both the national security review process and public relations is becoming ever more critical to a successful outcome for both sides of these deals.

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