The National Defense Industrial Strategy recognizes threats posed by foreign transactions
11 Jan 2024
On 11 January 2024, the Department of Defense unveiled its National Defense Industrial Strategy (NDIS), aimed at developing "a more robust, resilient, and dynamic modernised defense industrial ecosystem".
The Strategy outlines a number of priorities and relevant policy actions to achieve that objective. It also recognizes certain threats posed by foreign transactions and emphasizes that the Department of Defense must work with other federal executive departments to protect U.S. assets from ownership by commercial entities controlled or influenced by "adversarial nations".
Furthermore, the NDIS highlights the need to involve the Department of Defense in reviews of foreign transactions where "adversarial capital threatens U.S. national security and economic interests without benefit of structural countermeasures". These include private investment transactions in venture capital, private equity, real estate, greenfield investments, intellectual property acquisition and licensing, and debt markets, among others.
Regarding intellectual property concerns, the Strategy acknowledges the need for tight policies and enforcement to mitigate the risk of foreign entities using their influence in U.S. companies to gain unauthorized access to valuable trade secrets and technologies.
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Type:
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Entry and establishment (Approval and admission)
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Industry:
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Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Other manufacturing)
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Services (Public administration and defence; compulsory social security)
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Sources:
