In September 2012, for only the second time in history, the President exercised his statutory authorities to prohibit the acquisition of a US company on national security grounds. This matter, involving Chinese-controlled Ralls Corporation, offers valuable lessons for foreign companies contemplating US investments. In particular, the Ralls case highlights the dangers associated with transactions that close without CFIUS consideration, the risks associated with physical proximity to sensitive US facilities, and the benefits of early consultations with experienced CFIUS counsel. At the same time, the Ralls matter does not portend any change in US openness to foreign investment-including from China.

China has established a new process for reviewing the national security implications of foreign investments in Chinese companies. On February 12, 2011, China's State Council published the “Notice…

In late 2008, as financial markets were crashing, the Vale Columbia Center on Sustainable International Investment launched the Columbia FDI Perspectives. The first Perspective, entitled “The FDI recession has begun,” correctly forecast an FDI recession in the following year. From that first Perspective in late 2008 to the end of 2010, the series published thirty-three concise notes on topical FDI-related issues by diverse experts in the field. The purpose of these Perspectives is to inform readers about some of the important issues and trends in the contemporary debate on FDI, and to promote a wide-ranging discussion about the policy implications of these trends and events. The topics of these Perspectives, while not an exhaustive list of the issues raised by the global investment regime, capture a dynamic period in the global debate on international investment and reflect many hot topics and issues of continuing relevance in 2009-2010. Topics ranged from the implications of the financial crisis and recession for major economies, to the changing geography of the international investment regime and policy questions faced by emerging markets; from the implications of sovereign investment for national security and measures taken to restrict such investment, to policy options for countries seeking to increase inward investment flows and trying to stay competitive in a downward market; from investment in land and agriculture, to investment in extractive industries – raising important questions both for national policy and for the international investment regime. The range of topics reflects the multifaceted, interdisciplinary and rapidly evolving nature of key issues in international investment. This compilation of the Perspectives offers snapshots of some of the most topical issues of 2009-2010 and an opportunity to connect the dots, drawing out the interconnections among the various themes addressed in the stand-alone Perspectives. It is the collection of these issues and policy considerations that, woven together, forms the changing fabric of the international investment regime. By putting these pieces together in one volume, this e-book allows a clearer picture to emerge.

There was considerable public scrutiny of the Obama Administration’s performance in its inaugural year, but comparatively little focus on one of the Administration’s key processes governing the flow of investment into the United States ― namely, the Committee on Foreign Investment in the United States (CFIUS). Yet, this is a frequent question we receive from foreign investors -has the change in the administration affected CFIUS? The good news for investors and U.S. transaction parties alike is that the overall CFIUS process continues to function well under the Obama Administration and has been faithful to the principles of open investment. At the same time, there have been several notable developments in the volume and pace of CFIUS reviews over the past year that should be of interest to those who watch the cross-border M&A market closely. The slowdown in overall M&A activity contributed to a reduction in filings with CFIUS. 1 In 2008, CFIUS reviewed 155 cases; CFIUS reviewed fewer than half as many transactions in 2009. 2 This is the lowest number of notices since 2005 and the first reversal of an upward trend in nearly a decade.

There was considerable public scrutiny of the Obama Administration’s performance in its inaugural year, but comparatively little focus on one of the Administration’s key processes governing the flow of investment into the United States ― namely, the Committee on Foreign Investment in the United States (CFIUS). Yet, this is a frequent question we receive from foreign investors -has the change in the administration affected CFIUS? The good news for investors and U.S. transaction parties alike is that the overall CFIUS process continues to function well under the Obama Administration and has been faithful to the principles of open investment. At the same time, there have been several notable developments in the volume and pace of CFIUS reviews over the past year that should be of interest to those who watch the cross-border M&A market closely. The slowdown in overall M&A activity contributed to a reduction in filings with CFIUS. 1 In 2008, CFIUS reviewed 155 cases; CFIUS reviewed fewer than half as many transactions in 2009. 2 This is the lowest number of notices since 2005 and the first reversal of an upward trend in nearly a decade.