The Trump administration is reshaping inbound and outbound investment policy and trade and export controls to (i) facilitate foreign investment and the diffusion – and global adoption – of U.S. technology, and (ii) mitigate national security risks, including to keep U.S. technology out of the hands of “foreign adversaries.” Time will tell which priority takes center stage in shaping U.S. policy. Inbound Investment Policy In February, President Trump issued the America First Investment Policy, key features of which include: ▪ Presumption of Denial: CFIUS may default to denying investments from China and other countries designated as “foreign adversaries” in sensitive U.S. sectors, such as technology, critical infrastructure, healthcare, agriculture, energy, and raw materials. ▪ Expanded Authority: CFIUS is directed to work with Congress to strengthen its authority over “greenfield” investments, sensitive technologies (especially AI), and “emerging and foundational” technologies. ▪ Fast-Track Review: An expedited “fast-track” process for allied and partner countries who invest in 15 Executive Order, Regarding the Acquisition of Certain Assets of EMCORE Corporation by HieFo Corporation, Jan. 2, 2026, whitehouse.gov/presidential-actions/2026/01/regarding-the-acquisition-of-certain-assets-of-emcorecorporation-by-hiefo-corporation/. 16 See MoFo Client Alert, Up and Running: Treasury Publishes Final Rules for Outbound Investment Security Program, Oct. 31, 2024, mofo.com/resources/insights/241031-up-and-running-treasury-publishes-final-rules. U.S. advanced technology and other priority sectors. The Treasury Department subsequently announced a Known Investor Pilot Program for certain investors. ▪ Openness to Passive Investments: Support for passive investments by foreign persons that do not confer governance rights, managerial influence, or access to non-public technical information. CFIUS Actions ▪ After a protracted process, the President cleared the acquisition by Nippon Steel of U.S. Steel, subject to a novel non-economic “golden share,” granting the U.S. government veto power over certain corporate and operational changes. It is yet to be seen whether the U.S. government will utilize this measure in other transactions. ▪ Reflecting the administration’s willingness to block deals on national security grounds, including scrutinizing even smaller transactions and those that closed without notification to CFIUS, on January 2, 2026, President Trump ordered HieFo (a Delaware corporation controlled by a PRC citizen) to divest the digital chips and related wafer design, fabrication, and processing businesses HieFo acquired from EMCORE (reportedly for approximately $3 million) in April 2024.15 Outbound Investments The Treasury Department established its outbound investment security program (“OISP”),16 prohibiting, or requiring notification regarding, certain outbound investments to “covered foreign persons” (focused on persons associated with “countries of concern,” i.e., Chinese and Chineseowned persons) engaged with specified sensitive technologies: semiconductors and microelectronics, quantum information technologies, and AI systems. The Comprehensive Outbound Investment National Security (“COINS”) Act of 2025 then revised the OISP to: ▪ Expand the “countries of concern” to include comprehensively or highly sanctioned countries: Cuba, Iran, North Korea, Russia, and Venezuela. ▪ Add two new sensitive technologies: Highperformance computing and supercomputing and hypersonic systems. U.S. Export Controls — Emphasis on AI ▪ In July, President Trump released his Artificial 3. National Security and Trade Concerns Continue to Rise 44 Morrison Foerster
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