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ARTICLE · 19 SEPTEMBER 2022

Biden Administration Issues Executive Order Defining Additional National Security Considerations For CFIUS

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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On September 15, President Biden signed an Executive Order (EO) with the first ever formal Presidential direction to the Committee on Foreign Investment in the United States (CFIUS or the Committee).

United StatesGovernment, Public Sector
Eric McClafferty
Eric McClafferty
Wyatt Mince
Wyatt Mince

On September 15, President Biden signed an Executive Order (EO) with the first ever formal Presidential direction to the Committee on Foreign Investment in the United States (CFIUS or the Committee). The EO emphasizes the risks that the Committee should consider when reviewing covered foreign company purchases of U.S. businesses. The EO is intended reemphasize existing CFIUS concerns that countries are increasingly stepping up efforts to obtain the "sensitive personal data" of U.S. persons and technology critical to U.S. national security, with a focus on export-controlled know-how. The new measures from the EO are outlined below.

Supply Chain Resilience.The EO directs the Committee to consider a covered transaction's effect on supply chain resilience and security, both within and outside of the defense industrial base. The underlying message is that CFIUS should look broadly at supply chain effects of proposed acquisitions and not just focus on direct national

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