President Trump orders Chinese company to divest its ownership of U.S. hotel management software company

On 6 March 2020, President Trump issued an order (the Order) forcing Beijing Shiji Information Technology Co., Ltd., organized in China, and its subsidiary Shiji (Hong Kong) Ltd., organized in Hong Kong (collectively, Shiji), to divest of their interest in StayNTouch, Inc., a Delaware hotel management software company (StayNTouch). Shiji’s access to U.S. hotel guest data appears to have been the key national security concern underlying the president’s decision. Shiji, which acquired StayNTouch in September 2018, has four months to complete the divestiture, unless an extension of up to three months is granted.

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