In the Headlines
August 10, 2023

China Chides Biden's Investment Curbs for Sensitive Tech


International Trade attorneys Andrew McAllister and Robert Friedman were interviewed by Law360 about President Joe Biden's executive order restricting U.S. investments in China and how it will be enforced. The order targets sensitive technologies like advanced semiconductors and artificial intelligence, and it charges the U.S. Department of the Treasury with carrying out the program. Mr. McAllister commented that the U.S. is attempting to apply a "scalpel type approach" by focusing on specific technologies. He added that though China could react with countermeasures, tensions in U.S.-China relations throughout the past few years have already decreased investments.

"Therefore, to the extent that China imposes any countermeasures with respect to Chinese investment into the U.S., it is unclear whether it would have any additional impact beyond the current downward trend," he said.

Mr. Friedman explained that because the executive order is ambiguous, input from the tech industry will be essential for shaping and implementing regulations. For example, the order could have an extraterritorial reach, potentially affecting non-U.S. businesses whose CEOs are U.S. citizens.

"Both of these areas are subject to further rulemaking, so input of businesses and investors is critical to ensuring the final rules are properly tailored to protect national security while avoiding unnecessary burdens on global companies or unintended consequences for cross-border dealmakers," he said.

READ: China Chides Biden's Investment Curbs for Sensitive Tech (Subscription required)

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