There’s a good explainer here.
Amidst all the Friday night hubbub of the Pentagon Night of the Long Knives, a super-important executive order regarding China is flying underneath the radar. I will try to explain that EO in as succinct a manner as possible, because it’s in an area for which I have some limited expertise. […]
-It also sounds like China will face a much stricter CFIUS review standard than investors from friendly countries. I think what Trump is saying is that basically ALL Chinese investment in or acquisition of US businesses will halt, and it remains to be seen how we may direct divestment of existing Chinese holdings in US companies.
I don’t think people realize just how much Chinese investment there is in US companies. Many US white shoe law firms have massive China practices which facilitate enormous (both in terms of $$$ and frequency) investments by China in US technology industries, often through veiled entities like Cayman Island corporations. In my practice of law, I have long been stunned at just how much Chinese investment there is in our key technology businesses. If I am reading the tea leaves correctly, this EO is a signal that basically ALL Chinese investment in US companies will cease, and what Chinese holdings currently exist may require divestment.
This stood out, from a Canadian regulatory swamp perspective: d) My Administration will also expedite environmental reviews for any investment over $1 billion in the United States.
Read the full EO here.