Proposed changes to CFIUS rules would ensnare more Chinese-backed U.S. biotechs

A proposed regulation from the Department of Treasury could change what triggers CFIUS review of foreign investment in U.S.-based “critical technology” companies. The rule could increase mandatory filings for companies with investors from countries subject to extensive U.S. export controls, including China.

Under the proposed rule, the Committee on Foreign Investment in the United States would no longer determine whether a mandatory filing for investment in “critical” technologies is necessary based on their use in 27 select industries, including nanotechnology and biotechnology R&D...