IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

Yes

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 02 Dec 2016 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On December 2, 2016 President Obama signed an order blocking the proposed acquisition of Aixtron, Inc., a California-based subsidiary of the German company Aixtron SE. All involved firms are in the semiconductor industry. The parent was the subject of a proposed acquisition by Grand Chip Investment GMBH, another German company that is nonetheless ultimately controlled in part by a Chinese limited partnership known as Fujian Grand Chip Investment Fund.
 
According to the presidential order, 'There is credible evidence that leads 'the president' to believe that' these foreign investors 'might take action that threatens to impair the national security of the United States.' This is only the third time since the creation of the Committee on Foreign Investment in the United States in 1975 that a president has acted on a recommendation by the committee to block a foreign investment.

AFFECTED COUNTRIES

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