President Biden Signs Executive Order to Regulate U.S. Investments in Sensitive Technologies in Countries of Concern

President Biden signed an executive order on August 9, 2023, that will regulate certain U.S. investments in countries of concern in entities engaged in activities involving sensitive technologies critical to national security. The order specifically targets investments in semiconductors and microelectronics, quantum information technologies, and artificial intelligence.

The order identifies the People's Republic of China (PRC) as a country of concern and requires the Secretary of the Treasury develop a program to regulate U.S. investments in these sensitive technologies in countries of concern. The program will prohibit certain investments in entities that engage in specific activities related to these technology areas that pose the most acute national security risks, and require notification for other sensitive investments.

The order is designed to prevent foreign countries of concern from exploiting U.S. investment in these sensitive technologies to develop military, intelligence, surveillance, and cyber-enabled capabilities that risk U.S. national security.

If you are a technology company and you are concerned about how to navigate an evolving regulatory environment, contact Lanton Law today. We stay up-to-date on the latest technology policy and legal trends and can help you implement new business strategies.