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Heard of CFIUS? If your business involves foreign investments into the United States, it’s a name you can’t afford to ignore. Here’s what you need to know about recent changes, and why they matter to both attorneys and business owners.
CFIUS, the Committee on Foreign Investment in the United States, is an interagency committee led by the Treasury Secretary. Its job is to review foreign investments in U.S. businesses and real estate, and to flag any deal that might raise national security concerns. If CFIUS sees a red flag, it can recommend that the President block or unwind the transaction.
What’s changed? Here’s a look at the most important updates from 2025:
- “America First” Investment Policy Shift: In a February 2025 policy memorandum, the Trump Administration emphasized an “America First” approach to foreign investment, focusing on (a) restricting investments from countries of concern while (b) streamlining and encouraging investments from allied nations. The memorandum also commits to restricting the use and shortening the duration of “mitigation agreements” (which permit foreign investments to move forward subject to certain conditions). If pursued, transactions of trusted parties would be favored.
- Real Estate and Legislative Changes: Although 2025 saw no major legislative changes, numerous proposals and heightened attention from other agencies demonstrated an increased focus on expanding CFIUS’s jurisdiction over real estate transactions, particularly those involving critical infrastructure (e.g., military airports) or agricultural land.
High-Profile CFIUS Cases and Enforcement:
- TikTok: i.e., CFIUS’s moment in the media spotlight. The government’s demand that ByteDance, TikTok’s Chinese parent company, divest its U.S. operations dominated the news. After multiple extensions, in 2026 ByteDance spun off a separate US company to run US-based TikTok, resolving national security concerns.
- Nippon Steel Corporation: On June 18, 2025, Nippon Steel Corporation completed its acquisition of United States Steel Corporation. In 2023, CFIUS began a review of the Japanese company for “national security” reasons. In 2025, President Trump approved the acquisition after Nippon Steel signed a national security agreement granting the U.S. government a “golden share” and pledging $11 billion in investments and no layoffs.
- Jupiter Systems: On July 8, 2025, President Trump prohibited Jupiter Systems’ acquisition by Chinese and Hong Kong interests (i.e., Suirui Group Co, Ltd., and Suirui International Co., Limited, respectively). The Administration cited national security concerns.
- Outbound Investment Rules: 2025 brought new rules for foreign investments in sensitive US technology (semiconductors, AI, quantum computing) from countries of concern – mainly China. The COINS Act, signed into law by President Trump in 2025, expanded controls and introduced new reporting requirements, even for complex cross-border deals with subsidiaries.
Bottom line: CFIUS is making waves, and the rules keep evolving. Have questions or need help navigating CFIUS? Contact our team today!
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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