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
Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.
Rose Prince

2018-04-07 09:36:00 Saturday ET

Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage.

Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage in response to the Cambridge Analytica data debacle and use

+See More
Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.
Jacob Miramar

2019-02-11 09:37:00 Monday ET

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation. Share repurchases

+See More
A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice.
Laura Hermes

2018-10-05 10:38:00 Friday ET

A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice.

A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice. Her advice encompasses several steps toward better financial literacy

+See More
A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms.
Becky Berkman

2018-11-29 11:33:00 Thursday ET

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms.

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms. As Democrats have successfully flipped the Ho

+See More
Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data.
Olivia London

2019-08-16 17:37:00 Friday ET

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data.

Amazon faces E.U. antitrust scrutiny over the current e-commerce use of merchant data. The European Commission probes into whether Amazon uses key third-par

+See More
AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.
Andy Yeh Alpha

2019-01-21 10:37:00 Monday ET

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube January 2019 In this podcast, we discuss several topical issues

+See More