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The White House “regulates foreign investment by US companies”

Following US President Joe Biden’s recent request for an executive order to thoroughly review foreign investment in the US in the high-tech sector in advance of the national security level, he is pushing for measures to control foreign investment by US companies also. The purpose is to control not only the inflow of money into the US from competing countries such as China but also the outflow of US capital from a security perspective. Through this, we decided to ensure ‘technology leadership’ that protects key technologies and supply chains in the United States.

White House National Security Adviser Jake Sullivan said in a speech at the Emerging Technologies Summit in Washington, DC “In particular, there are investments that cannot be controlled by export controls and that can strengthen technological capabilities competitors in the most sensitive areas are subject to regulation,” he added.

The White House is said to be considering a plan to pre-screen security risks when investing in China, etc. in the high-tech sector. In addition, the Biden administration has also installed a ‘guard rail’ that prohibits investment in China in the high-tech semiconductor sector for all companies that receive tax benefits under the $52 semiconductor aid law billion.

Regarding an executive order that requires the Board of Foreign Investment Review (CFIUS) to scrutinize foreign investment that changes ownership of manufacturing, key minerals, and technology critical to US national security, Sullivan said , “It will protect US investors from predatory foreign investment.” We will continue to review whether further action is needed to protect it.” He predicted, “The development of science and technology will establish itself as a game changer in the fields of health, medical care, food security, and clean energy as it divides the geopolitical landscape of the 21st century.” As a technology leadership strategy, Sullivan suggested four areas: △Invest in the science and technology ecosystem, △cultivate STEM (science, technology, engineering, and mathematics) talent, △protect technological excellence, and △deepen and integrate alliances and partnerships.

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