Intel Brief: China. Folks, this is important for the homefront, and few seemed to notice. President Biden last week signed an executive order expanding the role of CFIUS — the Committee On Foreign Investments In The United States. The committee, a secretive body created by Congress, vets foreign investment in the U.S. that could have national security impact (full disclosure: your narrator has had some experience with the process. It works).
The expansion extends the CFIUS mandate to any deal that has the potential to lead to the theft of not only U.S. technology, but U.S. consumer data as well (think: ID theft). While China isn’t named, they are the clear target.
The administration is also expected to issue an executive order soon that goes the other way; that is, that limits business that American citizens can conduct overseas — with the national security danger again being the impetus.
I’ve been critical of the Biden administration (see above!), but credit where it’s due — this CFIUS move is the right call. And long overdue.
Additionally, major firms are finally getting the message on China. The latest example is Apple’s decision to make its latest phones in India. Google is doing the same, beginning to shift to production in Vietnam.
Thus endeth “Chimerica” — and none too soon.
But with this de-coupling comes danger… could be a very messy divorce. Brangelina, on a global scale.