Trump blocks foreign investment over personal data concerns
Updated: Aug 18, 2020
On March 6, 2020, in a case with significant implications for foreign investment in U.S. companies dealing in personal data, President Trump ordered the complete divestiture by a publicly traded Chinese company, Beijing Shiji Information Technology Co. Ltd. (Shiji), of its 2018 acquisition of StayNTouch, Inc. (StayNTouch), a U.S. hotel management software company. The order is the first major executive action under new regulations which came into effect last month on February 13, 2020, promulgated by the Committee on Foreign Investment in the United States (CFIUS), focusing in part on foreign investment in companies collecting or maintaining the “sensitive personal data” of U.S. citizens.
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