Square Pegs in Round Holes: U.S. Investment and Technology Restrictions on Chinese Interests

January 24, 2024 | BY

Susan Mok

In 2023, significant U.S. restrictions were placed on Chinese interests. Charles Wu of Clyde & Co reviews the legislative changes, and offers practical insights into their potential impact, and the path forward in 2024

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Summary

  • In 2023, the United States continued to impose new investment and technology restrictions on Chinese interests
  • Key legislative changes last year included the proposed reverse CFIUS mechanism, continued implementation of the Holding Foreign Companies Accountable Act, new risk factor disclosure requirements for prospective listed companies, enhanced and extraterritorial export controls on semiconductors and semiconductor equipment, and an explicit secondary sanctions regime for non-U.S. financial institutions
  • In 2024, the market can expect a further continuation of U.S. restrictions on Chinese interests
  • This will pave the way for non-U.S. investors to capitalize on the PRC market