Laura Black Quoted by Nikkei Asia on China-Related Scrutiny Faced by Japanese Investors in US Critical-Tech Sector

For its article “Japan investors in U.S. tech face tougher scrutiny over China ties,” Nikkei Asia quoted Akin international trade senior counsel Laura Black. The article looks at the increased scrutiny being faced by Japanese companies with China ties that are looking to invest in U.S. technology businesses. It notes that the Committee on Foreign Investment in the United States (CFIUS) is requesting more detailed notices from foreign investors and taking longer to investigate those notices.

Laura, who previously served as Director of Policy and International Relations, CFIUS, Office of Investment Security, said that, although the U.S. government strongly supports robust investment screening protocols from other governments, CFIUS examines each foreign entity and its links to countries of concern individually: “There could be risks that wouldn't necessarily be captured by Japan's investment screening regime, for example, due to the activities of the U.S. business or the acquirer's business ties.”

She also noted that the government continues to make efforts to avoid obstructing most foreign investment even as it focuses on closing gaps in protecting national security.

Laura said that Japanese investors are, generally, on the lower end of the risk spectrum. She added, however, that “if they are making an investment into a company with sensitive technology, or large amounts of sensitive data, for example, they do need to be mindful of the entire ownership structure, particularly if there are Chinese shareholders that will have access to information or some kind of control over that Japanese investor, as well as commercial or other ties to countries of concern.”