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International Regulatory Enforcement

CFIUS Extends its Reach to Order the Termination of Ekso Bionics' Role in Joint Venture in China
On May 20, 2020, Ekso Bionics Holdings, Inc. (“Ekso Bionics”), a U.S. manufacturer of robotic mechanical suits (“exoskeletons”), announced that it had received an ultimatum from the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”) to terminate its role in a 2019 joint venture with Chinese partners.
More Clarity, More Complexity: New CFIUS Rules Put Spotlight on Mandatory Filings
The Department of the Treasury has issued proposed rules that, upon becoming final, will revise the conditions under which parties to a foreign investment in any U.S. business that produces “critical technologies” are required to provide notice to the Committee on Foreign Investment in the United States (“CFIUS”).
The New CFIUS Regulations: How Will This Actually Work? FAQs We Wish Treasury Would Answer
Gallons of ink will be spilled explaining the new regulations published by the Department of the Treasury to implement the extensive changes to the national security review process undertaken by the Committee on Foreign Investment in the United States (“CFIUS"). The updated rules, which went into effect on February 13, 2020, were mandated by the 2018 Foreign Investment Risk Review Modernization Act (“FIRRMA").
New Rules for CFIUS: How Investment Funds Can React and Take Advantage
The Committee on Foreign Investment in the United States (“CFIUS”) has just implemented new rules effective February 13, 2020 under the Foreign Investment Risk Review Modernization Act (“FIRRMA”). The new regulations overhaul how CFIUS will review inbound investments into the U.S. for national security risks, and the changes have significant implications for U.S.-based investment funds.
CFIUS's New Pilot Program Signals an Expansive Approach to Its Jurisdiction Under FIRRMA
CFIUS has launched a pilot program mandating, on pain of civil penalty, that parties to all foreign investments in a defined group of industry sectors must submit their transactions for review, when specific triggers are met. This action signals CFIUS's intent to aggressively exercise its expanded authorities under FIRRMA, a recent statutory overhaul to the CFIUS process.

Equally notable is what CFIUS's approach to the design of the pilot program augers for its full implementation of FIRRMA authorities in the future. CFIUS appears poised to assume all powers conferred by Congress to review foreign investment transactions, including possibly mandating filings in circumstances beyond just those involving foreign government actors.
The “Transformative” CFIUS Bill: Not So Fast.
The Foreign Investment Risk Review Modernization Act (“FIRRMA”), a package of amendments to the national security review process overseen by the Committee on Foreign Investment in the United States (“CFIUS”), has just been signed into law. An overhaul of the CFIUS process was certainly much-anticipated and, many think, long overdue. But did the legislation truly transform CFIUS’s authority and procedure to the degree and in the ways expected by the investment community? In some ways, yes. But a closer reading of the lengthy amendments (totaling nearly 100 pages) yields less than meets the eye.