Clifford Chance
China and CFIUS : a double-edged sword
23 March 2011
Two of our recent briefings have explained the mechanics of China's new national review process, under which acquisitions of Chinese assets in certain industries may be reviewed and rejected on national security grounds.
This new process was announced only a day after the US Committee on Foreign Investment (CFIUS) advised Huawei to withdraw its acquisition of the cloud computing assets of 3Leaf Systems. This briefing examines the coincidental timing of both incidents, how CFIUS operates and the implications of this CFIUS' decision.
