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CFIUS Probing US Company's China Transfers, Compliance With NSA

The Committee on Foreign Investment in the U.S. is investigating whether TuSimple Holdings is complying with a national security agreement between CFIUS and the U.S.-based self-driving truck and autonomous freight shipping technology company, TuSimple said. The company said it’s “cooperating with the inquiry,” which is examining “information shared by TuSimple U.S.” with its China-based businesses: Hydron and Hydron’s partners.

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“If CFIUS concludes that information shared with TuSimple China, Hydron and Hydron’s partners was shared in violation of the terms of the NSA, it may impose a civil penalty on the Company,” TuSimple said in a July SEC filing. “At this time, the Company is unable to estimate the likelihood of a negative outcome or the potential loss or range of loss associated with this matter.”

TuSimple entered into an NSA with CFIUS last year involving its 4-year-old transaction involving Chinese technology company Sina (see 2205270034). Soon after, it began receiving scrutiny from U.S. agencies over whether it legally transferred technology to China (see 2210310018).