Biden’s Clamp on China Security Reviews Frustrates Deal Seekers

The US-China deals market has soured as geopolitical tensions embolden Washington to closely scrutinize foreign investors and their ties to Beijing.

The Committee on Foreign Investment in the US has sharpened its focus on China and technology investments, according to several deals attorneys who interact with the inter-agency panel housed in the Treasury Department.

“Almost any touchpoint with China is viewed negatively by CFIUS and others in the national security community,” said Michael Leiter, CFIUS practice leader at Skadden, Arps, Slate, Meagher & Flom.

The shift is a symptom of the fractious relationship between the world’s two largest economies, marked ...