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The Pentagon has called for “hyper-vigilance” in reviewing foreign investment because of the economic uncertainty caused by the COVID-19 pandemic. There has already been a negative focus on trade with China and continuing scrutiny of China-based investment by U.S. government officials should be expected. This does not mean that deals cannot be approved.

In fact, China has led all countries in deals approved by the Committee on Foreign Investment in the United States over the last decade (which can be referenced in the CFIUS 2015 and 2016-2017 annual reports to Congress). However, Chinese investors have had significant deals publicly blocked from closing or been forced to unwind their transactions by three U.S. presidents.

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