Issued new Executive Order to strengthen the screening mechanism for Inbound Foreign Investments

On 15 September 2022, the president of the United States issued an Executive Order providing formal guidance to the Committee on Foreign Investment in the United States (CFIUS) on factors CFIUS must consider when conducting national security reviews.

The Executive Order 14083 “Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States” directs CFIUS to consider 5 specific factors: i) the transaction's effect on the resilience of critical U.S. supply chains; ii) the transaction's effect on U.S. technological leadership in specified industries; iii) investment trends that may have consequences for a given transaction's impact on national security; iv) cybersecurity risks; v) risks to U.S. persons' sensitive data.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific
  • Primary
  • Manufacturing
  • Services

• Sources:

  • The White House, Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States, https://www.whitehouse.gov/briefing-room/presidential-actions/2022/09/15/executive-order-on-ensuring-robust-consideration-of-evolving-national-security-risks-by-the-committee-on-foreign-investment-in-the-united-states/, 15 Sep 2022
  • Lexology, EO Provides CFIUS Guidance on Conducting National Security Reviews, https://www.lexology.com/library/detail.aspx?g=cb8739a2-35be-4d47-93d5-c2e4ace770f3&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2022-09-28&utm_term=, 26 Sep 2022
  • The New York Times, Biden Issues New Order to Block Chinese Investment in Technology in the U.S., https://www.nytimes.com/2022/09/15/us/politics/biden-china-tech-executive-order.html, 15 Sep 2022