Last week, the White House issued a National Security Presidential Memorandum (“NSPM”) intended to address current national security threats while preserving an open environment for international investment.

Key Takeaways: The NSPM outlines further restrictions on investment and M&A activity from foreign adversaries while proposing more favorable treatment for U.S. allies and those firms who distance themselves from these adversaries—in particular, the People’s Republic of China (“PRC”). Going forward, investors and other transaction parties should be aware of three key takeaways from the NSPM: 

Critically, the NSPM itself does not adopt any regulations or propose a timeline for doing so; we expect CFIUS to potentially initiate a new rulemaking process to implement these objectives in the near term.

Specific Changes to Current CFIUS Framework: The NSPM articulates a multi-pronged approach to foster foreign investment in the United States:

Restrictions on Adversarial Investments: The NSPM also outlines several measures to safeguard U.S. national security from investments from key U.S. adversaries:

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