President Biden Issues Executive Order Addressing Outbound Investments

On August 9, 2023, President Biden issued an Executive Order ("E.O.") on outbound investment regulation. This long-anticipated action marks the first time the U.S. government has sought to regulate investments made abroad by U.S. firms.

The E.O. directs the Department of the Treasury ("Treasury"), in consultation with the Department of Commerce and other relevant agencies, to establish new rules that limit certain investments in "countries of concern" and impose notification requirements on investments involving certain sensitive technologies. While details on the implementation of these new rules are still forthcoming, the E.O. is clear on what their focus will be: critical technology in China.