Proposed Rule Would Broaden CFIUS Mandatory Notification Requirements

On May 21, 2020, the U.S. Department of the Treasury published a proposed rule (the "Proposed Rule") that would significantly broaden the scope of mandatory filing requirements of the Committee on Foreign Investment in the United States ("CFIUS") for foreign investments involving U.S. critical technology businesses.¹ The Proposed Rule abandons the current restriction to specified industries and focuses on whether the target develops, tests, or manufactures critical technologies that would require a license for export-whether or not the critical technologies are exported or sold to third parties at all (e.g., proprietary manufacturing technologies)-to the jurisdiction of the foreign investor and its parent entities, effectively creating different mandatory notification requirements for different countries.