Ensuring Robust Consideration of Evolving National Security Risks

Sep 20, 2022

Summary

Tells a government group to carefully check foreign investments for new security dangers, especially in technology, data, and supply chains.

What problem does this solve?

Foreign countries might use investments in U.S. companies to gain access to important technology, supply chains, or personal data, which could harm national security. This order updates the rules for reviewing these investments, making sure the government looks for modern threats like cyberattacks and data collection.

What does this order do?

Strengthens review of supply chain risks

Requires the Committee to consider how foreign investment affects the strength of U.S. supply chains for critical goods like microelectronics, clean energy tech, and food.

Protects U.S. technological leadership

Directs the Committee to review investments in key technology areas like AI, biotech, and quantum computing to prevent foreign adversaries from gaining an edge.

Adds focus on cybersecurity risks

Requires the Committee to check if an investment could give a foreign entity access to systems or data that could be used for cyberattacks against the U.S.

Increases protection for sensitive personal data

Directs the Committee to consider risks from investments in companies that handle large amounts of sensitive data on U.S. citizens, like health or genetic information.

Examines patterns of foreign investment

Instructs the Committee to look at not just single investments, but a series of investments in one industry to see if they create a cumulative national security risk.

Who does this affect?

Foreign investors and companies
U.S. businesses in critical technology and infrastructure sectors
The Committee on Foreign Investment in the United States (CFIUS)

What is the real world impact?

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Strengthens national security reviews

Updates the foreign investment review process to protect the U.S. from modern threats. It focuses on key areas like technology, supply chains, and the security of personal data.

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Targets strategic competitors

While not naming specific countries, the order's focus on technology and data security is widely seen as a way to counter investments from nations like China. It aims to prevent them from acquiring sensitive U.S. technology and information.

When does this start?

This order takes effect immediately, providing new guidance for the ongoing review of foreign investments as of September 15, 2022.