Hidden Influence, Real Risk: How NDAA 2026 Redefines Foreign Ownership Oversight

The FY2026 National Defense Authorization Act marks a decisive shift in how the United States views foreign ownership, control, and influence. What was once a limited defense-sector requirement has now moved into the mainstream of federal oversight, touching industries that previously considered themselves far removed from national security scrutiny.

FOCI — Foreign Ownership, Control, or Influence — has become a central lens through which Washington evaluates corporate governance, investment structures, and operational security. The new NDAA directs agencies to expand their monitoring and enforcement efforts across a widening set of sectors, including critical technologies, advanced manufacturing, energy systems, data infrastructure, biotechnology, artificial intelligence, and semiconductor-adjacent industries. Companies working anywhere near these fields should expect deeper questions, broader documentation requirements, and higher expectations for transparency.

Many businesses underestimate how easily FOCI concerns can arise. In practice, problems do not always stem from headline foreign takeovers or high-profile investments. More often, they emerge quietly and unintentionally. A minority foreign investor from a past funding round, an offshore venture-capital syndicate, an R&D partnership involving overseas collaborators, or even data hosted on servers operated by a foreign-owned cloud provider — all of these can trigger federal review. The increasingly global nature of capital and technology means that companies must not only know who owns what, but also understand how influence, access, and information flow through the organization.

The NDAA’s updated provisions signal that enforcement will strengthen, not soften. Agencies are being encouraged to look upstream and downstream, tracing ownership chains, data pathways, and contractual relationships that were previously overlooked. This reflects a broader trend: national security considerations are now shaping regulatory policy far beyond traditional defense contractors.

Companies that take these shifts seriously will position themselves for stability. Those that do not may encounter delays in federal contracting, complications in acquisition activity, or unexpected compliance inquiries. The path forward requires disciplined governance, clear documentation, and proactive risk assessment — qualities that will define responsible corporate leadership in the U.S.–China era.

Artisan Business Group assists companies in evaluating their ownership structures, identifying potential influence risks, and building mitigation strategies that align with federal expectations. As FOCI oversight expands, preparation is no longer optional. It is a strategic imperative for companies seeking to protect their operations and maintain long-term competitiveness in a changing regulatory environment.