News Tech: The White House says more foreign investment in US companies will require federal approval under a new executive order that bans transactions that could allow potential rivals control of key supply chains. important US or sensitive technology, the White House said on Thursday. The order adds specific guidance and additional attention to reviews already conducted by the Committee on Foreign Investment in the United States, or CFIUS, three senior administration officials said in a call with reporters on condition of not being identified.
Although the order did not name China or Russia, “where the investments come from and who the investors are will be very important,” one of the senior administration officials said. One of the biggest concerns continues to be access to sensitive data, such as medical information or biological data, and the order seeks to prevent foreign firms from obtaining personal data on U.S. citizens that could be exploited, such as obtaining personal data on a hotel chain`s guests, administration officials said on background in response to following up questions from Defense One.
“Some countries use foreign investment to gain access to sensitive data and technology for purposes that are detrimental to the national security of the United States,” the White House said in a basic statement on the order. This order focuses on transactions in specific areas, such as microelectronics, but can apply to any transaction where it is determined that sensitive data, technology, or the supply chain could be affected, and it allows the president to retroactively order the divestment of a previously completed transaction if a problem is found, the White House said.
Even if the data managed by a company is anonymized, “advances in technology, combined with access to large data sets, increasingly enable the re-identification or de-anonymization of what once was unidentifiable data,” the White House said in its statement on the order.
Check the latest news about tech news section for best information.