Japanese companies’ ambitions to pursue more deals in the US could fall foul of intensified scrutiny of their business activities in China, trade lawyers have warned.
The concerns, which lawyers said were being debated at the top of some of Japan’s biggest companies, centre on the Committee on Foreign Investment in the US (Cfius) — the inter-agency body that screens deals by non-US companies and that has stepped up its reviews of buyers’ links with China.
The warnings come as Japanese companies explore more acquisitions in the US, following the ending of Covid-19 restrictions that made overseas deals difficult, and with Chinese buyers facing even greater hurdles to secure US deals.