China Business Review Publishes Akin Gump Article on Chinese Investment in the United States
China Business Review has published the article “Chinese Investment in the U.S. – Lessons and Opportunities,” written by Akin Gump international trade partner Tatman Savio and associate Alex Conway and former associate William Leahy.
The article observes that Chinese investment in the United States has topped more than $22 billion so far this year, outpacing China’s rate of investment during the same period in 2015 and 2014. China has also had more transactions reviewed by the Committee on Foreign Investment in the United States (CFIUS) than any other country. The authors note that while several proposed Chinese investments have encountered CFIUS challenges, with some transactions either being blocked or abandoned, “opportunities exist for prudently structured and strategically focused deals.”
Savio, Conway and their co-author proceed to outline the responsibilities of CFIUS and some recent deals that were adversely affected by it, as well as some that survived its review. They then discuss the current political environment in the United States, noting that despite some tough talk on the campaign trail, that “does not necessarily translate into tangible policies in a new administration.”
The authors conclude with a caution that companies “think strategically about sensitivities with a proposed deal, and how to mitigate economic and political concerns.” By planning ahead and anticipating these issues, “companies can give themselves a chance to succeed in navigating and surviving CFIUS review.”
To read the full article, please click here.