CFIUS rules mum on foundational tech definition

New rules proposed by the U.S. Department of the Treasury for implementing changes to CFIUS’s jurisdiction and processes do not clarify what would constitute foundational technology that would put clear markers around what biotech investments would be and wouldn’t be scrutinized under the new law. The lack of clarity could mean continued tapering of Chinese investment into U.S. biotechs.

The proposed rules released Tuesday are similar to those of a pilot program launched in October 2018 to review foreign investments in U.S. companies within 27 industries when the deal gives specific rights to the foreign investor and the technology is deemed to be “emerging and foundational” (see “CFIUS Waiting Game”)...