The National Defense Authorization Act (NDAA) for 2027 is coming into focus after the House and Senate armed services committees advanced their versions of the bill earlier this month.
Leaders of the world’s two most powerful economies will sit down together for the first time tomorrow. The list of topics to cover could be long. But this meeting is more about the relationship that will be established between President Donald J. Trump and his Chinese counterpart, Xi Jinping.
Recently, the Committee on Foreign Investment in the United States (CFIUS) has been thrust into the limelight with a spate of high-profile deals. An inter-agency committee of the US government, CFIUS has the authority to review, for national security reasons, any transaction that would result in a foreign entity having control of a US asset. CFIUS has the power to investigate, modify or recommend that the president block any transaction for which it judges national security concerns cannot be mitigated.
The recent two sessions of China’s legislature and advisory bodies were resplendent with “core of the core” choreography ensuring everybody was in lock-step with President Xi Jinping, the leader of the Chinese Communist Party, and with the party, the authority on government entities and action. On the policy side, the prevailing narrative was to slow-walk reforms while fast-tracking state-led entrepreneurship and top-shelf technology acquisition.
Forecasting the financial performance of a proposed business and accurately assessing the investment required to launch operations is always a complex affair. In China, where foreign currency restrictions significantly complicate cross-border transactions, the strategic planning of funding foreign-invested entities (FIEs) is of particular importance.
