A detailed review of 50 Chinese outbound deals to have been assessed by the US’ inter-agency panel CFIUS since President Donald Trump came to power suggests it has taken a consistent approach to Chinese investments despite a perception, in some quarters, of anti-China bias.
CFIUS has cleared 8 Chinese M&A investments this year and has been responsible for six deal failurestranslating into a “success rate” of 57% for deals involving CFIUS reviews with publicly announced decisions in 2018. Notably, that percentage success rate remains exactly the same when compared to the clearance or CFIUS induced deal collapse rate across the past 18 months (since President Donald Trump was inaugurated on 20 January 2017).
This finding somewhat counters the perception that CFIUS under the influence of the Trump administration has been “stepping up” restrictions on Chinese companies investing in the US.
by George Shen
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