The Committee on Foreign Investment (CFIUS) has increased its scrutiny of high profile deals following a recent surge in Asian takeovers of European companies that own businesses in the US. The Wall Street Journal reported that in 2011, the UK had 25 deals submitted for CFIUS review, the highest number of deals, according to an annual report CFIUS provides to Congress. In 2013, the most recent report available, Asian buyers ranked as the most frequent buyers submitting to CFIUS review, with 21 Chinese deals submitted and 18 Japanese deals submitted.
White & Case partner Farhad Jalinous attributes the shift to the growing importance of emerging markets with a simultaneous expansion by CFIUS of what represents a national-security concern. "CFIUS has been migrating to the emerging markets because the sources of inbound investment to the US are shifting," he said. "What is perceived as being relevant to national security has also been expanded. You get these two phenomena coming together at the same time."