Navigating U.S. Foreign Investment

Direct and indirect investments in U.S. businesses and assets can be subject to a number of national security-based foreign investment controls. As part of Linklaters’ global foreign investment practice, we can assist dealmakers in assessing regulatory risks and navigating regulatory processes relating to the following U.S. authorities:

• Committee on Foreign Investment in the United States (CFIUS). CFIUS, comprising representatives from several government agencies, is charged with identifying and addressing national security issues arising from a wide variety of foreign investments in U.S. businesses and other transactions involving U.S. real estate.
• Defense Counterintelligence and Security Agency (DCSA). DCSA, part of the U.S. Department of Defense, is responsible for mitigating foreign ownership, control, or influence of U.S. businesses that hold facility security clearances (typically because they require access to classified information in connection with their work as contractors or subcontractors supporting sensitive U.S. government programs), as well as certain uncleared government contractors and subcontractors.
• Directorate of Defense Trade Controls (DDTC). DDTC, an element of the U.S. State Department, regulates foreign ownership or control of manufacturers, service providers, exporters, and brokers whose activities are governed by the International Traffic in Arms Regulations — export controls governing military goods and services.
• Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (Team Telecom). Team Telecom, a multi-agency body, conducts national security reviews of foreign applications for certain telecommunications licenses granted by the Federal Communications Commission.
• Outbound Investment Security Program. Pursuant to Executive Order 14105 (2023), the Office of Investment Security of the U.S. Department of the Treasury administers the U.S. government program requiring notification or prohibition of investments by or directed by U.S. persons in certain entities engaged in development or production of semiconductors and microelectronics, quantum information technologies, or artificial intelligence systems.