Joe Biden took a big step regarding foreign investment and national security, Chinese companies on target

US President Joe Biden will sign an executive order on Thursday in view of foreign investment and national security. According to the Biden administration, the goal of this executive order is to make the national security system more robust. Actually, this step is being taken by the US to rein in Chinese investment in the American technology sector. According to the news agency AP, it was informed by the White House that this step is not being taken against any particular country. 

White House officials further said that the order would encourage oversight by the Committee on Oversight of Foreign Investment in the US. Explain that a committee called CFIUS oversees matters related to foreign investment and mergers of companies in the US. The committee, called CFIUS, has members from the departments of state, defence, justice, commerce, energy and homeland security.

There is an attempt to stop the growing dominance of China

This committee sends its findings and recommendations directly to the US President. The US President has the power to suspend or restrict a deal. It is worth noting that for some time, China has started to take possession of America's technology sector and many areas. America is very worried about this matter.

Chinese companies were taking advantage of loopholes in US law

The 2018 law expanded CFIUS oversight to review certain joint ventures, minority stakes and real estate deals near military bases or other sensitive national security facilities. According to a report, Chinese companies were taking advantage of loopholes in US law and improperly obtaining technology and possibly sensitive information. US lawmakers have also expressed concern that Chinese companies were working with foreign companies to gain access to sensitive technology.