FIRRMA Becomes Law, Reforming CFIUS, Export Controls, and Forever Changing Diligence in Foreign Direct Investment and Structuring of Public and Private Equity Deals

In June 2018, the White House outlined the threats posed by China’s investment in and acquisition of US companies, noting that China is engaged in “state-sponsored IP theft through physical theft, cyber-enabled espionage and theft, evasion of US export control laws, and counterfeiting and piracy.” Apparently, someone recognized that those $1 million-to $5 million-dollar companies in Silicon Valley may be getting capital injections from folks who are not in it simply for the investment return. Worse still, until now, the United States has had no mechanism to review or prevent such foreign investment and resultant control.