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ARTICLE · 31 AUGUST 2023

Big Changes In Outbound Foreign Investment To China

Linklaters LLP
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Key details for private equity sponsors to consider in response to President Biden's executive order.

GlobalGovernment, Public Sector

Key details for private equity sponsors to consider in response to President Biden's executive order.

By now you have likely heard about Executive Order 14105 – President Biden's August 9 executive order that will eventually restrict outbound US investment in Chinese companies "engaged in activities involving" semiconductors and microelectronics, quantum information technologies or artificial intelligence that are deemed critical for China's military, intelligence, surveillance or cyber-related capabilities. Some of these investments will be prohibited outright, while others will require notification to the US government.

Implementation of the order will not come for several months. Multiple US government agencies, led by the Treasury Department's Office of Investment Security (OIS), will draft rules putting the order into effect. As a first step, however, Treasury has issued an Advance Notice of Proposed Rulemaking (ANPRM) identifying some of the current

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