United States of America: Opened consultation on Executive Order addressing US investments in certain national security technologies and products in countries of concern including registration requirements

On 9 August 2023, President Biden issued an Executive Order (EO) that empowers the US Treasury Secretary to reduce or forbid US investments in Chinese entities operating within three specific sectors: semiconductors and microelectronics, quantum information technologies, and artificial intelligence systems. Additionally, an Advance Notice of Proposed Rulemaking (ANPRM) was issued, inviting public commentary on the implementation of the Executive Order. Public input will be accepted until 23 September 2023. The primary objective of this order is to protect against the employment of American capital and expertise in advancing China's technologies that could potentially enhance its military capabilities, thereby jeopardising US national security. The order will entail proscribing certain transactions, while also necessitating that investors notify the government of their intentions regarding other transactions. Moreover, there is contemplation of introducing registration prerequisites for US investments in entities within the People's Republic of China (PRC) that engage in activities linked to AI-infused software designed for specific purposes that harbour the potential for military, intelligence, or national security ramifications.