Publications 2022

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CFIUS Conference 2022 – updates on case review principles

美国外国投资委员会会议重要内容概述

In June 2022, the Committee of Foreign Investments in the United States (“CFIUS”) hosted their first ever conference for practitioners, many important notices were addressed at the conference.

To adapt to the ever-evolving national security landscape, CFIUS suggested that it would be smart for investors to be prepared for mitigation and expect any future re-negotiation of mitigation measures. To prepare for a CFIUS review, filing a shortened declaration instead of a full Joint Voluntary Notice (“JVN”) can be beneficial at times, however for investors from countries of concern, or when the petition involves other complex issues, a JVN would be expected.

 

With respect to data security, cases involving sensitive personal data (“SPD”) should be analyzed not only for its current access to SPD, but also for how these data collecting practices would change in the future. Genetic and Medical data are now concerned as “high risk”. CFIUS stated that they will continue to share investment screening data with allies of the United States, and work with them on collecting intelligence on foreign acquirers.

 

The Consolidated Appropriations Act on March 8th, 2022 funded 12 staff positions in the “Industry and Analysis” unit of the Commerce department’s International Trade Administration, The CFIUS review would become more in-depth around the protection of American technology, and investors should expect increasing mitigation orders, and more post-review questions.

 

今年六月,美国外国投资委员会("CFIUS")举办了他们有史以来的第一次从业人员会议,该次会议讨论了许多重要议题。

 

首先,为适应不断变化的国家安全形势,CFIUS会建议投资者为缓解措施,以及后续的措施重新商讨环节做好准备。为准备CFIUS的审查,提交一份简短的声明取代完整的联合自愿通知("JVN")是有益的,但是对于来自“受关注国家”的投资者,或者当申请涉及其他复杂问题时,投资者需提交完整JVN。

 

其次,数据安全方面,涉及敏感个人数据("SPD")的案件,审查不仅包括其目前对SPD的访问情况,也需涵盖未来数据收集方式可能发生的变化。其中基因和医疗数据现在被视为 "高风险"。CFIUS表示,他们将继续与众多盟友国分享投资相关数据,并与他们合作收集有关外国投资者的情报。

 

最后,2022年3月8日的《综合拨款法案》为商务部国际贸易管理局的 "行业和分析 "部门提供了12个职位,CFIUS的审查将围绕防止技术外泄变得更加深入严谨,投资者预计会面临更多的缓解令,以及审查完结之后来自相关部门的后续跟进。

SEC published Sample Letter to China-Based Companies

美国证券交易委员会公司财务部发布《致中国公司函样本》

 

On Dec 20, 2021, Division of Corporation Finance of SEC publish Sample Letter to China-Based Companies. Recent events have highlighted the risks associated with investing in companies that are based in or that have the majority of their operations in the People’s Republic of China (China-based companies). The Division of Corporation Finance believes that more prominent, specific, and tailored disclosure about these risks, and companies’ use of the variable interest entity (VIE) structure specifically, is warranted to provide investors with the information they need to make informed investment decisions and for companies to comply with their disclosure obligations under the federal securities laws.

In light of these concerns, the Division is issuing comments to China-based companies seeking more specific and prominent disclosure about the legal and operational risks associated with China-based companies. The Division’s comments focus on the need for clear and prominent disclosure regarding the structure of the company, including the relationship between the entity conducting the offering and the entities conducting the operating activities, risks associated with a company’s use of the VIE structure, and the potential impact on the company’s operations and investors’ interests if such structure were disallowed or the contracts were determined to be unenforceable. The Division’s comments also focus on additional legal, regulatory, and enforcement risks that may apply to investments in China-based companies, such as the potential impact of the Holding Foreign Companies Accountable Act and related rules and any necessary PRC permissions a China-based company may need to operate its business or offer securities to foreign investors.

The illustrative sample letter contains sample comments that, depending on the particular facts and circumstances, the Division may issue to China-based companies. The Division urges companies to consider these sample comments and additional regulatory developments in this area as they prepare their disclosure documents.

 

       2021年12月20日,美国证券交易委员会公司财务部发布《致中国公司函样本》。他们认为最近的事件凸显了投资于设在中国或大部分业务在中国的公司(中国公司)的相关风险。公司财务部认为,对于这些风险的更突出、更具体、更有针对性的披露,以及公司具体使用可变利益实体(VIE)结构,有权向投资者提供作出明智投资决策所需的信息,并使公司遵守联邦证券法规定的披露义务。

       鉴于这些担忧,该部门正向中国公司发表意见,要求披露与中国公司有关的法律和经营风险的更具体和突出的信息。该部门的意见集中于明确和突出披露公司结构的必要性,包括进行发行的实体和进行经营活动的实体之间的关系,与公司使用VIE结构相关的风险,如果这种结构被禁止,或合同被确定为不可执行,将对公司的运营和投资者的利益产生潜在影响。该部门的评论还关注了在中国投资公司可能面临的额外法律、监管和执法风险,例如《外国控股公司问责法》(Holding Foreign Companies accountability Act)和相关规定的潜在影响,以及中国公司在经营其业务或向外国投资者提供证券时可能需要获得的任何必要的中国许可。

        说明性样本信包括有样本意见,根据具体事实和情况,该部门可向中国公司发出样本意见。敦促各公司在拟备披露文件时,会考虑这些样本意见和在这些方面的相关监管情况。