Farhad Jalinous Quoted in Two Articles on CFIUS Investigation of China-U.S. Steel Industry Joint Venture
July 8 & 9, 2010
Farhad Jalinous, Partner in Kaye Scholer's National Security/CFIUS group based in the Washington, DC office, was quoted in the article "Investment from China Upsets Washington - Again," that appeared in the July 8, 2010 The Deal Pipeline, and in "Steel Industry, House Members Press For CFIUS Review Of Chinese Investment," in the July 9, 2010 Inside U.S. Trade. The articles discuss a proposed joint venture between the China-based Anshan Iron and Steel Group Corp. and the Mississippi-based Steel Development Co. The proposal has come under scrutiny because of the economic implications for the U.S. steel industry, and U.S. lawmakers have called upon CFIUS to "thoroughly investigate" the deal. However, stopping the deal may be difficult. "There is an age-old debate over CFIUS' mandate, which currently is that it focus solely on national security and not economic security." Mr Jalinous said in The Deal Pipeline. If the deal goes to investigation, CFIUS will have to decide on a course of action for mitigation of potential risks. "If the identified risks cannot be resolved through mitigation, CIFIUS would ask the companies to withdraw the investment," Mr. Jalinous said in Inside U.S. Trade. "He added that nearly all cases CFIUS decides are a risk to national security are withdrawn before the end of the 75-day review and investigation. If this period expires CFIUS would then submit a recommendation to president to deny the investment within 15 days."