Join a panel of experts for a discussion on the combined use of export controls and outbound investment restrictions on sensitive technology as a means to address national security concerns vis-a-vis the People’s Republic of China.
In October 2023, the Department of Commerce’s Bureau of Industry and Security updated restrictions for the sale of specific technologies with the issuance of the Semiconductor Manufacturing Equipment (SME) and Advanced Computing Chips Rule Interim Final Rules (AC/S). These rules build on controls released the previous year and seek to strengthen measures for more effectively blocking China’s access to a scope of products with civil-military fusion applications.
Further, the Department of the Treasury is expected to soon issue a final rule on outbound investment following the Notice of Proposed Rulemaking (NPRM) released in June 2024 to implement Executive Order 14105. This E.O. outlines restrictions on transactions to prevent exploitation of U.S. capital and its accompanying benefits for the semiconductor, quantum computing, and artificial intelligence sectors in countries of concern including the People’s Republic of China, Hong Kong and Macau.
This discussion addresses the strategic objectives the U.S. government is using these restrictions to achieve, reviews the new restrictions and requirements, and explores strategies and due diligence tools stakeholders can use to both stay ahead of the regulatory curve and support valued trade and investment.
Melissa Mannino, Partner, BakerHostetler
Howard Mendelsohn, President of Global Business Development and Engagement, Kharon