Biden Signs Executive Order Blocking Foreign Investments in US Technology

President Joe Biden on Thursday signed an executive order bolstering a regulatory panel’s ability to scrutinize foreign investments in areas that are deemed critical for the U.S. economy.

While the order does not directly mention the Chinese regime, it comes amid growing concern among U.S. officials about China’s investments in the American technology sector and other industries. It tells the federal Committee on Foreign Investment in the United States (CFIUS) to review cases involving “microelectronics, artificial intelligence, biotechnology and biomanufacturing, quantum computing, advanced clean energy, and climate adaptation technologies.”

The CFIUS interagency group is tasked with reviewing deals and mergers involving foreign people and entities. The committee sends its findings and a recommendation to the president, who has the power to suspend or prohibit a deal.

The committee, known as CFIUS, is made up of members of the departments of State, Defense, Justice, Commerce, Energy, and Homeland Security and is led by the Treasury secretary. It sends its findings and a recommendation to the president, who has the power to suspend or prohibit a deal.

“Although foreign investments can in many circumstances help to foster domestic innovation, it is vital to protect U.S. technological leadership, especially when foreign investments involve sectors that are critical to U.S. national security,” the order stated.

The order calls for CFIUS to weigh whether a foreign investment or sale could affect the resilience of critical U.S. supply chains and the impact it could have on U.S. technological leadership in areas affecting U.S. national security and on broader investment trends.

Data Risk

And it will also be tasked with reviewing foreign acquisitions of companies over concerns an investor could gain control over a certain technology sector or if investments could pose a cybersecurity risk.

“Data is an increasingly powerful tool for the surveillance, tracing, tracking, and targeting of individuals or