Since January, Bureau of Industry (BIS) officials have been formulating an analytical framework for establishing controls on emerging technologies (which include biotechnology, artificial intelligence and machine learning technology, quantum information and sensing technology, additive manufacturing, and robotics). Recently on the Global Trade & Sanctions Law blog, colleagues Nancy A. Fischer, Stephan E. Becker, Matthew R. Rabinowitz and Sahar J. Hafeez provided an update on the process, while explaining why the timing of the rule will matter for companies for which export controls (and CFIUS) are a concern.
The Committee on Foreign Investment in the U.S. (CFIUS) has effectively ordered the divestiture of Beijing Kunlun’s ownership of the online dating site, Grindr, just as the company was preparing for an IPO. The case is important for three reasons. It emphasizes the importance of a CFIUS risk assessment before an investment or acquisition is negotiated. It highlights the risks of deciding not to make a voluntary CFIUS filing before the deal closes. And it sends a message to parties who have already closed: the U.S. government is watching, so assess your CFIUS exposure now.