U.S. Inteligence: We Have “Moderate Confidence” That One or More Governments Directed Multi Nationals to Acquire Critical American Technologies in a “Coordinated Effort”

“U.S. intelligence officials found with “moderate confidence” that one or more foreign governments had directed companies to acquire critical American technologies in a “coordinated strategy”.

The conclusion in a report by the Committee on Foreign Investment in the U.S. (Cfius), which vets sensitive acquisitions of U.S. assets by foreign companies, is a sign of growing alarm in the Obama administration about the motives of foreign state actors in buying U.S. companies.

It said evidence of such “suspect behavior” could include patterns of actual or attempted takeovers and the provision of “narrowly targeted incentives by foreign governments”, such as grants, loans or tax breaks, to companies acquiring U.S. targets.

The Treasury, which chairs Cfius, would not provide more details about any countries suspected by intelligence officials of coordinating with their companies. But it said a classified report delivered to Congress offered information supporting the conclusion.

“It is a shot across the bow. They’re saying ‘we know you are doing this and we are on the lookout for you’. Just know some of these are not going to get approved,” said Jamie Garelick, the former deputy attorney-general under the Clinton administration.”

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