Reform legislation strengthening the national security review process for mergers and acquisitions of U.S. companies by foreign ones seems likely to pass by August, lawyers who are experts in international trade and national security matters said.

They also said they expect the legislation—which would likely particularly affect M&A and early investment by Chinese entities in high-tech, telecommunications and big data industries—to progress despite White House vacillations over trade policy with China. The legislation also could affect some private equity transactions.

“The biggest change is that for a large category of investments it will no longer be voluntary to file, under FIRRMA [The Foreign Investment Risk Review Modernization Act of 2018]. In these cases there will be mandatory notification, which could in turn result in a full filing,” said CFIUS partner Michael Leiter, of Skadden, Arps, Slate, Meagher & Flom.