By Natasha Moore and Brian Mich
Trump’s Chinese policy is here to stay, even with a Biden administration to come. The expansion of export controls and the intensification of investigations by the U. S. Foreign Investment Committee (CFIUS) are examples of multiple regulatory vectors targeting China.
Despite the polarizing nature of current U. S. politics and the 2020 presidential election, Democrats and Republicans are sometimes aligned with their outlook on Chinese investment and primary technologies. International investors and U. S. corporations want to stay in the brain on how recent high-profile bans on social media programs like TikTok and WeChat not only have an effect on investment activity, but also reveal the U. S. strategy for Internet security and technological hegemony.
As noted in an earlier article, the global gap to a more fragmented Internet would possibly be narrower than large corporations think. The generational career between the United States and China continues to replace the foreign investment market.
In the most recent example of tensions between the United States and China, the Trump administration has made it even more difficult for Huawei to download U. S. -made chips. Commerce announced an extension of the direct foreign products rule on August 17, 2020, preventing any company from promoting to Huawei without a license any product, manufactured globally with U. S. technology. Policies that prevent Huawei and its potential affiliates from eluding export controls have been extended to 38 other subsidiaries in 21 countries. The number of blacklisted entities since Huawei was incorporated in May 2019 now stands at 152 companies.
Chinese and foreign corporations are not vulnerable to stricter export controls, however, until October 15, 2020, the Treasury Department has followed new regulations that strengthen CFIUS’ jurisdiction to review agreements when they converge with US export controls. U. S. , a market-changing attention for U. S. corporationsBut it’s not the first time Any agreement in which critical generation requires “U. S. regulatory authorization” to export, re-export, move (in the country) or move this generation to certain foreign parties or individuals in the asset chain is now identified as a mandatory deposit In short, if a U. S. company needed an export license to move the generation to a foreign customer of the U. S. company , a review of CFIUS is required.
Chinese corporations uniquely located in the U. S. market, which are adjacent to the generation of the social programs industry, may also be the subject of CFIUS’ long-term research. Trump, a ban that has since been blocked in U. S. appeals courts, continues to attract the Committee’s attention.
In mid-September, CFIUS began asking Tencent how its gaming corporations controlled non-public data from Americans. If Tencent were forced to get rid of his U. S. investments and US-based corporations, he would be forced to dispose of his U. S. -based investments and corporations. U. S. , the monetary loss would be estimated at $22 billion, or 6 to 7% of Tencent’s overall earnings.
Despite the imminent replacement of Biden’s administration, the United States and China are likely to remain locked up in a technological career in the coming years. CFIUS research obviously illustrates the Committee’s ability to know who has access to the non-public and private sectors of Americans. However, if Tencent were forced to move away from its investments in the US, it would be forced to move away from its investments in the US. Could particularly disrupt foreign industry and the global generation industry.
Natasha Moore is a member of CFIUS and Brian Mich is a spouse in compliance, forensic analysis and intelligence at Control Risks.
Control Risks is a global threat consulting company that helps organizations manage threats, new opportunities, and solve complex crises or disorders.
Control Risks is a global threat consulting company that helps organizations manage threats, new opportunities, and solve complex crises or disorders. Visit us in controlthreats. com.