President Joe Biden is planning to block Japan-based Nippon Steel’s acquisition of U.S. Steel, a deal that has been under review by the Committee on Foreign Investment in the U.S., according to multiple reports. CFIUS appears to have concluded that national security concerns raised by the acquisition couldn’t be mitigated, the Washington Post reported Sept. 4. The White House has declined to comment but in a statement told the Post that CFIUS “had not yet transmitted its recommendation to the president,” the report said. Biden and multiple U.S. lawmakers have voiced opposition to the deal (see 2403150066 and 2405100026).

At least 22 states recently have approved legislation regulating foreign ownership of U.S. land, reflecting growing interest in addressing the potential national security and economic implications of such investments, the Congressional Research Service said in a new report this week.

USDA estimates it would need about $36.7 million over five years to create an online system to collect and share information on foreign investment in U.S. farmland, a department spokesperson said Aug. 13.

Mike Pompeo, who served as secretary of state during the Trump administration, said this week that he supports the proposed acquisition of U.S. Steel by Japan’s Nippon Steel because he believes it would help American workers compete with “subsidized” Chinese steel.

President Joe Biden this week renewed a national emergency declared last year that authorized the Treasury Department to impose investment restrictions on certain U.S. investments in countries of concern. The emergency was renewed for one year beyond Aug. 9. Treasury is in the process of drafting regulations to govern American investments in certain sensitive technology sectors in mainland China, Hong Kong and Macau (see 2406210034 and 2408050038).

A decrease last year in filings with the Committee on Foreign Investment in the U.S. is continuing into 2024, Latham & Watkins said in an Aug. 2 client alert.

U.S. intelligence agencies are warning American emerging technology startups about the risks of accepting certain foreign investments, saying “foreign threat actors” from China and elsewhere are using those investments as a guise to steal sensitive technology.

Public comments are due Aug. 19 on a Treasury Department proposed rule that would add 59 military bases across 30 states to the jurisdiction of the Committee on Foreign Investment in the U.S. The rule, which Treasury previewed earlier this month (see 2407090003) but was officially published in the Federal Register July 19, also proposed to increase the scope of transactions CFIUS can examine for land purchases near eight other military bases, amend the definition of “military installation” and make other technical changes to the list of bases.

An EU body in charge of dialogue with industry from third countries gave its support this week for a January proposal to bolster the bloc’s foreign direct investment screening efforts (see 2401240078).

The Committee on Foreign Investment in the U.S. has approved Japanese computing chip manufacturer Renesas Electronics Corp.'s acquisition of U.S.-based electronics design firm Altium Ltd., the two companies announced July 1. The CFIUS action was the last regulatory authorization needed to complete the $5.9 billion sale, the companies said. The transaction, unveiled in February, is expected to close Aug. 1 after receiving Altium shareholder approval July 12.