Executive Order Outlines National Security Factors for Interagency Panel to Consider in Foreign Investment Reviews

President Joe Biden has signed an executive order to update the review process of the Committee on Foreign Investment in the U.S. by outlining five additional national security factors that CFIUS should consider when evaluating covered transactions.

The EO directs CFIUS to consider the effect of a transaction on the resilience of critical U.S. supply chains that may have implications for national security and on technological leadership in areas affecting national security, including artificial intelligence, microelectronics and quantum computing, the White House said Thursday.

The committee should also consider industry investment trends that may have consequences for a transaction’s impact on national security, cybersecurity risks that threaten to undermine national security and risks to sensitive data of U.S. citizens.

The order links the capabilities and role of CFIUS to the Biden administration’s national security priorities, such as improving U.S. supply chain resilience, ensuring data protection and maintaining U.S. technological leadership.

The policy also requires CFIUS to regularly assess its regulations, practices and processes to address evolving threats to U.S. national security.

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