In this session, Kharon, Arent Fox, and Aon are joined by David Jividen, Deputy Director, CFIUS Foreign Investment Review at the U.S. Department of Defense. The speakers provide an overview of the U.S. Innovation and Competition Act and the proposed EAGLE Act, addressing how these authorities create new requirements and regulatory expectations for covered activities.

In line with an increasing focus on securing supply chains across critical industries, the U.S. government is working to curb foreign influence on America’s supply chains by revising regulations on direct foreign investment. The U.S. government is increasingly using the Foreign Investment Risk Review Modernization Act (FIRRMA) and the Committee on Foreign Investment in the United States (CFIUS) to review foreign direct investments that pose national security risks.

The CFIUS review process was significantly expanded in 2018 to monitor foreign investments involving critical technologies, infrastructure, personal data, and real estate. More recently in June 2021, the Senate passed the U.S. Innovation and Competition Act that expands CFIUS authorities and the scope of covered transactions. This expanded scope raises due diligence requirements for a variety of new industry verticals.