Biden signs order for deeper foreign investment reviews in technology

US President Joe Biden signed an executive order Thursday to conduct deeper foreign investment reviews in technology, especially in chips and supply chains.

The Biden administration said the US has long recognized that certain investments from foreign persons, especially from competitors or adversaries, can present risks to national security.

"Some countries use foreign investment to obtain access to sensitive data and technologies for purposes that are detrimental to U.S. national security," according to a statement by the White House.

"As the national security environment, including the behavior of countries and individuals that seek to impair U.S. national security, evolves, the review process of the Committee on Foreign Investment in the United States (CFIUS, or the Committee) also must evolve," it added.

The order ties CFIUS’ role, actions, and capabilities with the administration's national security priorities, including preserving technological leadership, protecting Americans’ sensitive data and enhancing the US' supply chain resilience, said the White House.

Although China is not named, the executive order comes after Biden signed legislation in early August that aims to bolster US chip manufacturing in a bid to counter China.

The bipartisan CHIPS and Science Act sets aside $52.7 billion to increase production of American-made semiconductors, address supply chain vulnerabilities by producing more goods in the US, bolster domestic scientific research, and strengthen the country’s economic and national security.