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Firm Memoranda

President Biden Directs CFIUS to Consider Factors Affecting National Security

Date: 10/04/22

President Biden ordered federal agencies reviewing foreign investments to consider enhanced factors affecting national security, including supply chain resilience, technological leadership, cybersecurity, sensitive personal data, and industry trends. In an Executive Order signed on September 15, 2022 (the “Order”), the President directed the Committee on Foreign Investment in the United States (“CFIUS”) to consider five factors affecting national security risks during its review process. CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States to determine the impact of such investment on U.S. national security concerns. Our prior memoranda on CFIUS can be found here.

The Order is the first Executive Order that relates to CFIUS to be issued since CFIUS was established in 1975 and provides formal Presidential direction regarding the risks CFIUS should consider in its review of covered transactions. President Biden issued the Order to address the evolution of “the national security environment, including the behavior of countries and individuals that seek to impair U.S. national security.”

CGR Memo - President Biden Directs CFIUS to Consider Factors Affecting National Security.pdf (pdf | 195.93 KB )