The United States introduces outbound investment controls on certain transactions
09 Aug 2023
On 9 August 2023, the President of the United States issued Executive Order 14105, which declared a national emergency to deal with "an unusual and extraordinary threat to the national security of the United States" in the advancement by countries of concern in sensitive technologies and products, and recognized that United States investments often contribute or exacerbate this threat. Consequently, the Order directs the US Treasury to issue regulations requiring United States persons either to provide notification on certain transactions or prohibiting them from engaging in certain transactions. The new legal framework shall identify those notifiable and prohibited transactions relating to national security technologies and products that may either contribute to the threat to the national security of the United States, or pose a particular acute national security threat because of "their potential to significantly advance the military, intelligence, surveillance, or cyber-enabled capabilities of countries of concern". The Order defines countries of concern as China and its special administrative regions of Hong Kong and Macau and similarly indicates that it applies specifically to sensitive technologies and products in the semiconductors and microelectronics, quantum information technologies, and artificial intelligence sectors.
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Type:
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Entry and establishment (Approval and admission)
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Industry:
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Not industry specific
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Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment)
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Services (Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities)
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