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ARTICLE · 03 JULY 2019

How New U.S. M&A Restrictions On China Will Affect Tech Cos.

In a regulatory blitz, the Trump administration has recently taken a series of unprecedented actions designed to further protect domestic information and communications technology

United StatesGovernment, Public Sector
Mario Mancuso
Mario Mancuso
Shawn Cooley
Shawn Cooley
Lucille Hague
Lucille Hague

In a regulatory blitz, the Trump administration has recently taken a series of unprecedented actions designed to further protect domestic information and communications technology, or ICT, and services from what it considers Chinese threats. These steps will constrain China’s access to the U.S. market and to U.S. technology — and some have an immediate effect.

We summarize below the implications of these new developments, and flag key takeaways for M&A professionals.

The View From Washington

The month of May saw significantly increased tensions between the U.S. and China on national security grounds, which will have a cascading economic impact.

According to President Donald Trump, foreign adversaries are increasingly creating and exploiting vulnerabilities in the U.S. ICT sectors in order to commit malicious cyber-enabled actions, including economic and industrial espionage against the United States. Trump has emphasized that maintaining an open

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