Chinese Requests for U.S. Clearance on Investments Doubled in 2021

Chinese investors roughly doubled the number of applications they made last year seeking U.S. regulatory clearance for proposed stakes in American companies, according to a report the government plans to release on Tuesday, Reuters reported. The Treasury Department report seen by Reuters shows that Chinese investors filed 44 so-called "covered notices" seeking greenlights for their deals in U.S. President Joe Biden's first year in office compared to 17 such filings in 2020. The 2021 figures for China included filings from Hong Kong-based investors, while the 2020 numbers place Hong Kong's three such filings into a separate category, due to a shift in U.S. policy. Most foreigners seeking to take even non-controlling stakes in U.S. companies must seek approval from CFIUS, a powerful committee headed by the Treasury Department, which reviews transactions for national security concerns and has the power to block them. The committee, whose powers were dramatically expanded under a 2018 law, was used by former President Donald Trump to upend many Chinese investments in the United States. The new report shows China also made up the largest number of "covered notices," among all countries, accounting for 16.5% of the total, followed by Canada and Japan at 10.3% and 9.6%, respectively. Read more.