President Trump supports a bipartisan bill or the Foreign Investment Risk Review Modernization Act.
Charlene Vos

2018-07-21 13:35:00 Sat ET

President Trump supports a bipartisan bill or the Foreign Investment Risk Review Modernization Act (FIRRMA), which effectively broadens the jurisdiction of the Committee on Foreign Investments (CFIUS). This legislation gives CFIUS greater legal power to probe-and-block the acquisition of U.S. firms by foreign companies. The Trump administration advocates the fact that an expansion of CFIUS can be a powerful safety valve for future economic prosperity. In effect, this safety valve better protects the crown jewels of American technology and intellectual property from unfair trade transfers and corporate acquisitions that may threaten American national economic security.

In March 2018, CFIUS rejected the Singaporean rival Broadcom's M&A takeover of Qualcomm (a San Diego chipmaker) over 5G national security concerns. In mid-2018, CFIUS refused to approve a $1.2 billion M&A deal between MoneyGram (a Dallas money transfer company) and Ant Financial Group (a Chinese electronic-payments company). Also, CFIUS blocked the proposal from East Asian buyers to acquire a controlling equity stake in the Californian automobile LED business of the Dutch electronics giant Philips.

The new legislation grants CFIUS greater legal power to review foreign capital investment transactions beyond national economic security to U.S. competitive advantage in new industries such as 5G telecommunication and LTE broadband. Under this legislation, CFIUS can review major foreign capital investments, M&As, joint ventures, and strategic alliances that might involve the potential transfer of American critical technologies.

In accordance with the congressional mandate, CFIUS helps curb Chinese capital investments in American critical technologies that may hinder U.S. competitive advantage in emerging-industries due to national economic security concerns.

CFIUS prevents China and several other countries such as Russia, Japan, and Germany from exploiting loopholes in the current safeguards in order to acquire both sensitive and exclusive critical technologies, patents, and trademarks to the detriment of U.S. firms and inventors.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.
Becky Berkman

2018-10-13 10:44:00 Saturday ET

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-O

+See More
American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth.
Chanel Holden

2019-11-19 09:33:00 Tuesday ET

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth.

American unemployment declines to the 50-year historical low level of 3.5% with moderate job growth. Despite a sharp slowdown in U.S. services and utilities

+See More
Netflix has an unsustainable business model in the meantime.
Becky Berkman

2019-05-02 13:30:00 Thursday ET

Netflix has an unsustainable business model in the meantime.

Netflix has an unsustainable business model in the meantime. Netflix maintains a small premium membership fee of $9-$14 per month for its unique collection

+See More
U.S. yield curve inversion can be a sign but not a root cause of the next economic recession.
Dan Rochefort

2019-09-19 15:30:00 Thursday ET

U.S. yield curve inversion can be a sign but not a root cause of the next economic recession.

U.S. yield curve inversion can be a sign but not a root cause of the next economic recession. Treasury yield curve inversion helps predict each of the U.S.

+See More
The Economist interviews President Trump and spots the keyword *reciprocity* from trade to taxation.
Amy Hamilton

2017-07-01 08:40:00 Saturday ET

The Economist interviews President Trump and spots the keyword *reciprocity* from trade to taxation.

The Economist interviews President Donald Trump and spots the keyword *reciprocity* in many aspects of Trumponomics from trade and taxation to infrastructur

+See More
Sirius XM pays $3.5 billion shares to acquire the music app company Pandora.
Jonah Whanau

2018-09-25 10:35:00 Tuesday ET

Sirius XM pays $3.5 billion shares to acquire the music app company Pandora.

Sirius XM pays $3.5 billion shares to acquire the music app company Pandora. This acquisition would form the largest audio entertainment company worldwide.

+See More