Chinese drugmaker Grand Pharmaceutical Group avoided a foreign-investment review of its stake in US-based startup FastWave Medical, according to Reuters, after a dispute that raised questions about lobbying access, sensitive technology, and CFIUS procedure.
The Chinese pharma reportedly hired lobbying firm Checkmate in December for $30,000 for two weeks of services related to managing CFIUS-relevant work, which includes arranging a meeting between Grand Pharma’s legal team and senior Treasury officials.
At the center of the concern is the pending CFIUS review on Grand Pharma’s $12 million investment on the startup, which was asked by FastWave itself. The latter is a catheter manufacturer, with one of its creations reportedly features laser technology to treat calcium-plaqued arteries. Because the technology can have military use, shipment of such products to China are regulated by the government.
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What FastWave wants is for Grand Pharma to divest its 40% stake in the firm or become a passive investor instead, protecting its intellectual property.
CFIUS rejected FastWave’s filing, but not by publicly ruling on whether Grand Pharma’s investment posed a security risk. Instead, it dismissed the request over alleged inconsistencies in FastWave’s statements about Grand Pharma’s role in financing talks.
The dispute centered on two FastWave statements from 2025. In July, the startup said Grand Pharma had not given meaningful input on a financing round. In August, it described more substantive engagement. FastWave later argued that the difference reflected timing, saying Grand Pharma’s later input was limited to edits on a term sheet after the July statement.
The committee ultimately threw out the filing on those alleged misstatements and did not rule on any underlying national security concerns.
Fanning the flames of this issue, the lobbying firm is led by lobbyist Ches McDowell who has reported ties to presidential son Donald Trump Jr. They reportedly co-own a North Carolina property, according to a deed seen by Reuters.
Information for this story was found via Reuters and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
