CFIUS Update: President Obama Issues Rare Executive Order Blocking an Acquisition While Potentially Significant Changes to Foreign Investment Review by the United States Government Are on the Horizon
On December 2, 2016, President Obama issued an executive order blocking the sale of the U.S. assets of a German semiconductor manufacturer, Aixtron SE, to a Chinese investor, Fujian Grand Chip Investment Fund. Although proposed acquisitions in the semiconductor space have been abandoned for national security reasons, a Presidential order (as opposed to the threat of one) is a rare example of executive intervention that confirms the growing scrutiny of Chinese and other foreign investments in U.S. businesses.