Chinese cybersecurity investment in the U.S.: Is now the best time?
The rise of cyber-attacks targeting U.S. companies has led to tightened regulations by the government and increased investment in data privacy. In fact, worldwide spending on cybersecurity technology achieved a record $77 billion in 2015, 80% by U.S. companies. The Defend Trade Secrets Act (DTSA) of 2015, which is currently pending before the U.S. Congress, if enacted, may further boost cybersecurity spending by requiring rights owners to take “reasonable measures to keep such information secret” in order to enjoy the federal protection of trade secrets. Chinese investors, however, have additional timing and regulatory factors to consider before rushing into the seemingly lucrative market. These include a potential heightened review by the Committee on Foreign Investment in the United States (CFIUS) – total investments from China topped other countries for the past three years – and the pending bilateral investment treaty (BIT) between the two nations.
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