The approval by the Committee on Foreign Investment in the U.S. (CFIUS) shows power and desirability of inbound Chinese investment into the U.S. In the midst of Sino American political controversies on multiple fronts, the agency of the U.S. government dedicated to protecting national security surrounding foreign direct investment has waved through a transaction in which a Chinese company will own the manufacturer of servers used throughout the American government. In the era of the Chinese cyber threat, it is clear that the voices in the U.S. seeking to encourage inbound investment from China were heard.
Given that these servers are already being manufactured in Shenzhen, China, there may be less than meets the eye from a practical perspective. But the optics are significant. When combined with the recent “semi-win” by Ralls in its case against CFIUS and the approval of Shanghui’s acquisition of Smithfield despite political resistance, the message should be clear to Chinese companies seeking to enter the U.S. market. The U.S. is, indeed, open for business.
Stay tuned for Lenovo’s other deal, the purchase of Motorola Mobility from Google, which seems likely to make it through CFIUS, as well.