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ARTICLE · 22 SEPTEMBER 2022

Winston's Thoughts On President Biden's New CFIUS Executive Order

On September 15, President Biden issued a new Executive Order (E.O.) titled, "Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States."

United StatesGovernment, Public Sector

On September 15, President Biden issued a new Executive Order (E.O.) titled, "Executive Order on Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States." This is the first E.O. since CFIUS was established in 1975 to provide presidential direction on the factors that CFIUS is required to consider when evaluating foreign investments in U.S. businesses. Specifically, the E.O. states that CFIUS is required to consider the following four factors when evaluating transactions: (1) the transaction's effect on supply chain resilience and security, both within and outside of the defense industrial base; (2) the transaction's effect on U.S. technological leadership in areas affecting U.S. national security; (3) cybersecurity risks that may impair national security; and (4) risk to U.S. persons' sensitive data. The E.O. also clarifies that if a foreign person has made multiple investments in an industry or

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