Critical Tech Definition Said Lacking Clarity, as FIRRMA Regulations Take Effect

As Foreign Investment Risk Review Modernization Act rules take effect Thursday, FIRRMA’s definition for critical technologies remains unclear due to a lack of Commerce Department proposed rules on emerging and foundational technologies, trade lawyers said. FIRRMA expands jurisdiction of the Committee on Foreign Investment in the U.S. to review some investments involving critical tech (see 2001150018). Commerce “has really issued just one set of regulations that could possibly cover emerging and foundational technologies,” said Vinson & Elkins' Dave Johnson, referencing an interim final rule to restrict exports of geospatial imagery software released by Commerce in January: “There's a lot of work they have to do in this area.” Johnson, speaking alongside Vinson & Elkins' Damara Chambers at a Tuesday panel hosted by the law firm, said the scope of businesses affected by FIRRMA’s regulations that deal in critical tech could be significant. Voluntary declarations may be very helpful, Chambers said. “For benign transactions that ... aren’t complicated for CFIUS to get their arms around, those should move very quickly under this voluntary filing process,” she said. “I’m very excited about the concept.” The Commerce Department didn't comment Wednesday.