Chinese outbound investment flow may reach
$2.5tn
over the next 10 years
Our new report, published to mark our participation in the China Development Forum in Beijing, describes major developments in barriers to foreign investment in major economies such as the US and EU, and offers recommendations for businesses seeking to complete such foreign investment successfully.
> Download your copy of the report.
> Download your copy of the report (Chinese language version).
Germany strengthens rules on foreign investment control.
In the US, HNA abandons its investment in Global Eagle Entertainment, an in-flight entertainment provider, after failure to obtain CFIUS clearance
US President Donald Trump blocks acquisition of Lattice Semiconductor Corp by Canyon Bridge (a Chinese fund) on national security grounds.
In the UK, Canyon Bridge agrees acquisition of Imagination Technologies (a chip designer), along with an undertaking that Imagination’s US business would be sold off separately to mitigate CFIUS concerns.
In the EU, the European Commission publishes a proposal for a new regulation for “Investment Screenings” to establish a framework for EU Member States and the Commission to screen FDI into the EU.
Several deals abandoned, modified or delayed:
In the US, “FIRRMA” (Foreign Investment Risk Review Modernization Act) is proposed to toughen US foreign investment screening and expand CFIUS’s scope.
China’s National Development and Reform Commission publishes a directive of rules on outbound investment that took effect from 1 March 2018. The new directive expands the scope of transaction structures that are subject to scrutiny, expands on the definition of “sensitive sectors” (investments in which NDRC approval is required), and requires the NDRC to consider the impact of outbound investments on the national interest and national security.
In the US, Trump administration announces its new National Security Strategy, outlining concerns on technology leakage and describing China as offering a “challenge” to American interests
In the US, Ant Financial abandons its acquisition of MoneyGram International on CFIUS concerns.
German government intervenes in the acquisition of Cotesa, an aerospace parts manufacturer, pausing the transaction to see if it complies with Germany’s new law on foreign investment.
The US SEC blocks the sale of the Chicago Stock Exchange to a group of China-based investors.
China’s Geely Group acquires 9.7% stake in Germany’s Daimler
