The U.S. Government Publishes An Updated List of Critical and Emerging Technologies (CETs): Impact on CFIUS and Export Controls?
Insight by: T. James Min II
March 5, 2024
In February 2024, the U.S. National Science and Technology Council (“NSTC”) and its Fast Track Action Subcommittee on Critical Emerging Technologies updated the previous 2022 Critical and Emerging Technologies (CETs) List. The first update in two years is instructive in identifying the CETs that the U.S. Government is focused on for national security concerns.
The NSTC established the Fast Track Action Subcommittee in 2020 to identify critical and emerging technologies to inform national security-related activities across the U.S. Government. This updated list expands upon the original CET list and the February 2022 update by identifying subfields for each CET.
The updated list identifies 18 CET areas listed below. Though not a strategy document, this updated CET list informs government-wide and agency-specific efforts concerning U.S. technological competitiveness and national security. While the list does not have direct regulatory impact on the Committee on Foreign Investment in the United States (CFIUS) or the Export Administration Regulations (“EAR”), the list is still instructive in what areas of technology CFIUS or BIS may focus on in the future or in current enforcement efforts. For example, we may see more activity by CFIUS in terms of non-notification investigations in these CET areas. We may also see more placement of certain technologies on the below list in future updates to the Commerce Control List.
Regardless, as one contemplates receiving foreign investments in U.S. businesses, the list may serve as a useful reference. The updated 2024 CET List includes these 18 areas:
Advanced Computing
Advanced Engineering Materials
Advanced Gas Turbine Engine Technologies
Advanced and Networked Sensing and Signature Management
Advanced Manufacturing
Artificial Intelligence
Biotechnologies
Clean Energy Generation and Storage
Data Privacy, Data Security, and Cybersecurity Technologies
Directed Energy
Highly Automated, Autonomous, and Uncrewed Systems (UxS), and Robotics
Human-Machine Interfaces
Hypersonics
Integrated Communication and Networking Technologies
Positioning, Navigation, and Timing (PNT) Technologies
Quantum Information and Enabling Technologies
Semiconductors and Microelectronics
Space Technologies and Systems
To generate this updated CET list, it was stated that the Office of Science and Technology Policy (OSTP) facilitated an extensive interagency deliberative process through the National Science and Technology Council (NSTC) and in coordination with the National Security Council (NSC). The responsible NSTC subcommittee included subject matter experts from 18 departments, agencies, and offices in the Executive Office of the President, who identified CET subfields that their organizations determined may be critical to U.S. national security. As such, this updated CET list reflects an interagency consensus.
Each identified CET area includes a set of key subfields that describe its scope in more detail:
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Advanced supercomputing, including for AI applications
Edge computing and devices
Advanced cloud services
High-performance data storage and data centers
Advanced computing architectures
Advanced modeling and simulation
Data processing and analysis techniques
Spatial computing
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Materials by design and material genomics
Materials with novel properties to include substantial improvements to existing properties
Novel and emerging techniques for material property characterization and lifecycle assessment
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Aerospace, maritime, and industrial development and production technologies
Full-authority digital engine control, hot-section manufacturing, and associated technologies
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ItePayloads, sensors, and instruments
Sensor processing and data fusion
Adaptive optics
Remote sensing of the Earth
Geophysical sensing
Signature management
Detection and characterization of pathogens and of chemical, biological, radiological and nuclear weapons and materials
Transportation-sector sensing
Security-sector sensing
Health-sector sensing
Energy-sector sensing
Manufacturing-sector sensing
Building-sector sensing
Environmental-sector sensing
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Advanced additive manufacturing
Advanced manufacturing technologies and techniques including those supporting clean, sustainable, and smart manufacturing, nanomanufacturing, lightweight metal manufacturing, and product and material recovery
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Machine learning
Deep learning
Reinforcement learning
Sensory perception and recognition
AI assurance and assessment techniques
Foundation models
Generative AI systems, multimodal and large language models
Synthetic data approaches for training, tuning, and testing
Planning, reasoning, and decision making
Technologies for improving AI safety, trust, security, and responsible use
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Novel synthetic biology including nucleic acid, genome, epigenome, and protein synthesis and engineering, including design tools
Multi-omics and other biometrology, bioinformatics, computational biology, predictive modeling, and analytical tools for functional phenotypes
Engineering of sub-cellular, multicellular, and multi-scale systems
Cell-free systems and technologies
Engineering of viral and viral delivery systems
Biotic/abiotic interfaces
Biomanufacturing and bioprocessing technologies
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Renewable generation
Renewable and sustainable chemistries, fuels, and feedstocks
Nuclear energy systems
Fusion energy
Energy storage
Electric and hybrid engines
Batteries
Grid integration technologies
Energy-efficiency technologies
Carbon management technologies
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Distributed ledger technologies
Digital assets
Digital payment technologies
Digital identity technologies, biometrics, and associated infrastructure
Communications and network security
Privacy-enhancing technologies
Technologies for data fusion and improving data interoperability, privacy, and security
Distributed confidential computing
Computing supply chain security
Security and privacy technologies in augmented reality/virtual reality
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Lasers
High-power microwaves
Particle beams
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Surface
Air
Maritime
Space
Supporting digital infrastructure, including High Definition (HD) maps
Autonomous command and control
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Augmented reality
Virtual reality
Human-machine teaming
Neurotechnologies
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Propulsion
Aerodynamics and control
Materials, structures, and manufacturing
Detection, tracking, characterization, and defense
Testing
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Radio-frequency (RF) and mixed-signal circuits, antennas, filters, and components
Spectrum management and sensing technologies
Future generation wireless networks
Optical links and fiber technologies
Terrestrial/undersea cables
Satellite-based and stratospheric communications
Delay-tolerant networking
Mesh networks/infrastructure independent communication technologies
Software-defined networking and radios
Modern data exchange techniques
Adaptive network controls
Resilient and adaptive waveforms
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Diversified PNT-enabling technologies for users and systems in airborne, space-based, terrestrial, subterranean, and underwater settings
Interference, jamming, and spoofing detection technologies, algorithms, analytics, and networked monitoring systems
Disruption/denial-resisting and hardening technologies
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Quantum computing
Materials, isotopes, and fabrication techniques for quantum devices
Quantum sensing
Quantum communications and networking
Supporting systems
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Design and electronic design automation tools
Manufacturing process technologies and manufacturing equipment
Beyond complementary metal-oxide-semiconductor (CMOS) technology
Heterogeneous integration and advanced packaging
Specialized/tailored hardware components for artificial intelligence, natural and hostile radiation environments, RF and optical components, high-power devices, and other critical applications
Novel materials for advanced microelectronics
Microelectromechanical systems (MEMS) and Nanoelectromechanical systems (NEMS)
Novel architectures for non-Von Neumann computing
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In-space servicing, assembly, and manufacturing as well as enabling technologies
Technology enablers for cost-effective on-demand, and reusable space launch systems
Technologies that enable access to and use of cislunar space and/or novel orbits
Sensors and data analysis tools for space-based observations
Space propulsion
Advanced space vehicle power generation
Novel space vehicle thermal management
Crewed spaceflight enablers
Resilient and path-diverse space communication systems, networks, and ground stations
Space launch, range, and safety technologies
The sensitivities of foreign investment in the U.S. technology and other sectors do not appear to be dissipating. It will be important for investors, businesses, and legal counsels to continue to be diligent in considering national security concerns in their transactions that deal with critical and emerging technologies.
This summary is provided for informational purposes only and is not intended to constitute legal advice nor does it create an attorney-client relationship with LMD Trade Law PLLC or its affiliates.
