CFIUS Reviewing Chinese Investment in US Medical Firm, Lawmaker Says
The Committee on Foreign Investment in the U.S. is reviewing a Chinese company’s "deeply concerning" investment in Minnesota-based startup FastWave Medical, which is developing a new high-tech treatment for serious heart disease, Rep. Kat Cammack, R-Fla., disclosed Dec. 1.
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Cammack said China’s Grand Pharmaceutical invested in FastWave and has used its “veto power” to block new U.S. capital investment in the startup for more than a year. She accused Grand Pharmaceutical of trying to “bleed out” FastWave and force it to hand over its intellectual property.
Cammack sent a letter in late September urging the Treasury Department, which chairs CFIUS, to act swiftly, she said. The matter was first submitted to CFIUS in May, but the committee later asked FastWave to withdraw and refile after "repeated rounds of inquiry and delays," Cammack said.
"While I respect the complexity of CFIUS reviews, the drawn-out process has left FastWave vulnerable to financial exhaustion, a vulnerability the Chinese investor appears to be deliberately exploiting," she wrote.
Cammack also said FastWave's laser-based system "has the potential to save thousands of American lives while reinforcing the United States’ leadership in advanced medical technologies." The technology, which is export-controlled, is "not only transformative for cardiovascular care, but also has significant dual-use applications in semiconductor manufacturing and precision military systems, including targeting and range-finding."
A Treasury spokesperson declined to comment on the matter. Grand Pharmaceutical didn't immediately respond to a request for comment.