On August 9, 2023, President Biden issued an Executive Order (E.O.) ordering the issuance of outbound investment restrictions. This E.O. comes after nearly a year of anticipation (as we have documented on several occasions over the past year). This is the start of the reverse Committee on Foreign Investment in the United States (CFIUS) process that has been mostly speculation (and blog articles) until yesterday. In conjunction, the Treasury Department issued a press release, fact sheet, and Advance Notice of Proposed Rulemaking (ANPRM) seeking comments from the public on the proposed restrictions by September 28.Continue Reading Reverse CFIUS Unveiled: Focus on China, Semiconductors, Artificial Intelligence, and Quantum Computing

Recently, the Department of Commerce issued a memo, emphasizing that “technology protection is a core national security priority” and how companies that choose not to disclose significant violations of export regulations may have to bear concrete costs for non-disclosure. This memo highlights the continued focus to control U.S. technology security breaches, especially in the semiconductor and advanced computing industries.Continue Reading Technology Protection is a Core National Security Priority: BIS Strengthens Its Policy on Disclosures

Key Takeaways:

  • Outbound investment rules may require notification, but there is less risk of transactions being blocked by regulators.
  • Investments in advanced semiconductors in China may still be subject to being blocked.
  • The required notification, review, and possible restriction still represents a massive increase (from almost nothing) in regulation on outbound investments.
  • Increases in the scope and powers of the reviewers may follow in future regulations or legislation.

Continue Reading U.S. Outbound Investment Restrictions Are Becoming a Reality

On June 19, Commerce Secretary Ross mentioned at a Wall Street Journal CFO dinner that the Administration is now considering launching an investigation of semiconductor imports under Section 232 of the Trade Expansion Act of 1962. Ross said the specific concern is the threat of China to surpass U.S. semiconductor production.
Continue Reading Dinner Table Conversation: How an Offhand Comment May Signal a Shift in the Global Trade of Semiconductors