The Problem With New CFIUS Rules

Law360 (February 18, 2009, 12:00 AM EST) -- The Treasury Department recently issued final regulations governing the Committee on Foreign Investment in the United States (CFIUS),[1] the interagency body that reviews foreign investments in U.S. businesses for their potential impact on national security. It later published guidelines on applying the regulations.[2]

The regulations were published shortly before the U.S. and other G-20 nations promised to "refrain from raising new barriers to investment,"[3] a promise arguably at odds with the new regulations, which expand possible restrictions on foreign investment in the name of national security.

The apparent irony was not lost on the government, which has shifted its policy emphasis...

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