Key Notes:

  • The Executive Order does not change the review process or legal jurisdiction of CFIUS.
  • The Executive Order revises the national security factors for CFIUS to include in its foreign investment review process.
  • The Office of Science and Technology Policy is tasked with publishing lists of technology sectors it assesses are fundamental to U.S. technology leadership and national security.

On September 15, 2022, President Biden issued Executive Order (E.O.) 14083 to elaborate upon existing statutory factors and include additional national security factors the Committee on Foreign Investment in the United States (CFIUS or “Committee”) must consider in its review process of covered transactions. This marks the first time a president has issued a formal presidential directive on CFIUS-related matters since President Carter’s E.O. in 1975 which established the Committee.

The E.O. does not change the Committee’s review process or legal jurisdiction, but it must be considered in conjunction with the national security factors already set out in the CFIUS’s authorizing statute (see Section 721 of the Defense Production Act of 1950, as amended). “The United States welcomes and supports foreign investment,” the E.O. begins. “Some investments in the United States by foreign persons, however, present risks to the national security of the United States, and it is for this reason that the United States maintains a robust foreign investment review process focused on identifying and addressing such risks.”

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