CFIUS 2022 Annual Report: Key Takeaways on Record Filings, Investigations, and Singapore’s Rise

Pieter Gunst03 mins

The Committee on Foreign Investment in the United States (CFIUS) has recently released its statutory annual report for the calendar year 2022. This unclassified edition of the report – issued on July 31, 2023 – offers an overview of crucial trends within the realm of inbound foreign investment reviews by the U.S. government. The report outlines a number of interesting topics including a record number of filings, an upsurge in investigations, and the rise of Singapore as a significant source of foreign investments.

Let’s delve into the six key points detailed in the CFIUS 2022 Annual Report:

  1. Record Number of Filings: The report illustrates a surge in the total number of declarations and notices filed during 2022. This rise could be due to an increasing number of transactions involving U.S. businesses and their foreign counterparts.
  2. Increased Investigations: Alongside a hike in filings, the report also reveals a significant escalation in the number of investigations conducted by CFIUS over the past year. This potentially suggests a heightened due diligence attitude within the committee.
  3. Singapore Ascends: Historically, investors from China and Canada have dominated the foreign investment landscape in the U.S. However, the 2022 report reveals the emergence of Singapore as an increasingly involved player in the U.S. foreign investment sphere.
  4. Emerging and Foundational Technology: Given the escalating importance of technology in modern commercial dealings, the report investigates the nature and extent of foreign investment in emerging and foundational tech sectors in the U.S.
  5. CFIUS Outreach: The report highlights the efforts made by CFIUS to educate and engage U.S. businesses, firms, and other stakeholders about the procedures related to foreign investment screenings and review.
  6. International Cooperation: Lastly, the 2022 report focuses on the committee’s endeavors towards fostering international cooperation in formulating global standards for foreign investment reviews.

In conclusion, the CFIUS Annual Report for 2022 offers considerable insight into the varied facets of foreign investment in the U.S. This detailed document is a valuable source of information for legal professionals working in corporations and law firms globally, providing a comprehensive overview of the current state of affairs in U.S. foreign investment.