Insights

Foley Attorneys Discuss Preparation for New U.S. Outbound Investment Regime

Foley & Lardner LLP partners Louis Lehot and Christopher Swift are quoted in the IFLR article, “Law firms prep market for US outbound investment regime,” offering insight on how companies can approach the expected impact of new rules restricting outbound investment in advanced technologies and countries of concern to national security.

“Many clients are asking whether they can still invest in China – the answer to that is we don’t know quite yet,” said Swift. “It’s not a matter of ‘don’t go’. It’s a matter of going carefully, with the right kind of planning, preparation and advisors.”

“If you go carefully, there is a way forward, but if you pretend that the yellow light isn’t blinking at the intersection, it could turn into a red light – whether it’s the Chinese government or the U.S. government doing it to you,” Swift continued. “What the US government is saying with this new executive order is, we have one more red light we can throw up in the event that you’re not paying attention and not driving carefully.”

Lehot said he has been navigating the growing government scrutiny on venture capital investments in China and Chinese companies for some time. “As a Silicon Valley lawyer representing emerging growth companies and VC firms trying to make investments, I expect many questions as to whether it’s okay to proceed in the next three to four months, before a final rule emerges,” he commented.

“It’s really easy to get wound up by the headlines, but the thing that matters here is being ready, not overreacting to the problem,” added Swift. “That involves taking into account everything that’s been mentioned and doing it proactively, rather than reactively.”

(Subscription required)

AUTHOR(S):
POSTED:

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome.