The Committee on Foreign Investment in the United States (CFIUS) will have tighter control over transactions by foreign companies in sensitive industries such as technology and telecoms, Reuters reports.
New rules signed into law in August will affect 27 industries, from semiconductors to aircraft parts and commodities, that US lawmakers fear are vulnerable to predatory bids from Chinese companies with government links.
As of November 10, any foreign investment in these sectors must be reported to CFIUS if the deal confers non-public information or appoints foreign individuals to decision-making bodies. The committee will then have 30 days to approve the deal or take the investigation further.
“These temporary regulations address specific risks to US critical technology while informing the development of final regulations,” said Treasury Secretary Steven Mnuchin.
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