EO tightens foreign investments

Additional foreign investments in American firms will require federal approval under a new executive order (EO) signed by President Biden intended to bar transactions that may allow potential adversaries control of crucial U.S. supply chains or sensitive technology. The order adds guidelines and focus to the reviews already performed by the Committee on Foreign Investment in the United States (CFIUS), according to senior administration officials who asked not to be identified. Some countries use foreign investment to obtain access to sensitive data/technologies that may be detrimental to U.S. national security, a White House background statement read. The order focuses on transactions in specific sectors, such as microelectronics, but could apply to any transaction where it’s determined that sensitive data, technologies or supply chains could be impacted. It allows the President to retroactively order divestment of a previously completed transaction if an issue is found, the White House said. (Defense One 0915/22) White House Announces New Restrictions on Foreign Investment in US Tech, Supply Lines - Defense One