[Epoch Times, September 15, 2022](The Epoch Times reporter Li Yan comprehensive report) US President Biden is expected to sign a new executive order on Thursday (September 15) aimed at blocking the Chinese Communist Party’s control of US technology Investments to prevent “evolving national security risks.”
In a statement Thursday, the White House said the executive order was designed to improve the U.S.foreign investmentCommission (CFIUS) review process for foreign investment and ensure that relevant regulations remain “responsive to evolving national security threats.”
For years, the committee’s role was limited to preventing foreign acquisitions of U.S. companies that could endanger national security, such as military contractors.But Biden’s order dictatesforeign investmentThe committee increased its scrutiny criteria to focus on specific types of transactions that could allow foreign adversaries to disrupt U.S. supply chains.
The order directs the committee to review relevant cases affecting “microelectronics, artificial intelligence, biotechnology and biomanufacturing, quantum computing, advanced clean energy and climate adaptation technologies.” These are the focus of the “Made in China 2025” industrial plan announced by Chinese leader Xi Jinping in 2015, The New York Times reported.
The “Made in China 2025” plan targets 10 high-value industrial sectors in China to gain global dominance in innovation and manufacturing. Biden’s order identifies these industries as “essential to America’s technological leadership and, therefore, fundamental to national security.”
“Today’s executive order is part of a broader strategy of the Biden-Harkana administration to maintain U.S. economic and technological leadership, particularly in protecting national security,” the White House statement said. “This involves both strengthening U.S. domestic investment and domestic competitiveness. , also involves working with our allies while utilizing all available tools to protect American advantage and prevent our competitors and adversaries from undermining our national security.”
Committee on Foreign Investment in the United StatesStrengthen foreign investmentsecurity review
Lieutenant-General in the executive order willCommittee on Foreign Investment in the United StatesAdded five new transaction review criteria. The committee is an interagency panel that reviews acquisitions of U.S. businesses by foreign buyers.
According to a White House fact sheet, the new criteria include the impact of transactions on the resilience of critical supply chains, risks to sensitive data on U.S. citizens, cybersecurity threats, and implications for national security and U.S. technological leadership.
The new standards will apply to industries including semiconductors, artificial intelligence, biotechnology and clean energy technologies. Bloomberg reported that the move reflects growing concerns in the White House and among Democrats and Republicans about Chinese infiltration, especially as the Chinese Communist Party tries to quickly catch up and eventually surpass the United States in various high-tech industries, including by investing in U.S. companies.
The U.S. Treasury Department said in a report last month that applications from Chinese investors seeking U.S. regulatory approval to take stakes in U.S. companies roughly doubled last year.
“This executive order will help guide the committee and should also help companies and investors better identify national security risks in transactions early on to help them decide whether to report to the Committee on Foreign Investment in the United States,” one of the officials said. submit application.”
The official stressed that CFIUS is already considering such risks and has taken action in the past to address them.
The Committee on Foreign Investment in the United States has become a powerful tool to block Chinese investment in key areas of the United States.
During the previous Trump administration, CFIUS ordered China’s ByteDance Inc. to divest the U.S. operations of its popular short-video app TikTok. The reason is that the personal data of American users may be shared with the CCP.
Earlier, US media BuzzFeed reported that ByteDance employees in China had repeatedly accessed the personal data of US users.
Reuters reported in March that TikTok was close to a deal with Oracle Corp to store information on its U.S. users if ByteDance could not access it, hoping to address U.S. regulators’ concerns about the app’s data integrity. .
In addition to stricter scrutiny of inbound investment, the Biden administration is continuing to examine how it could potentially limit certain U.S. investments in rival countries such as China.
An official said the process is ongoing and has nothing to do with Thursday’s executive order.
While Biden’s executive order and CFIUS’s general review are not country-specific, the bulk of the deals reviewed by the committee involve Chinese buyers.
Responsible editor: Lin Yan#