Embargoed Announcement on Export Control Policies and Outbound Investments
Greetings to all participants on this teleconference call, and thank you for joining us today. The discussions today will be conducted on background, attributed to senior administration officials, and will remain embargoed until 5:00 p.m. Eastern time.
Present on this call are (senior administration official), (senior administration official), (senior administration official), and (senior administration official). Following this introduction, we will provide embargoed materials. But first, (senior administration officials) will share some initial remarks, followed by a Q&A session.
President Biden has emphasized the critical importance of advanced technologies, highlighting an unprecedented era of technological advancement. Through significant investments, we aim to revitalize American manufacturing and innovation. However, we must also safeguard these advancements to protect our national security interests. Thus, our export control policies and the newly finalized Outbound Investment Program are integral to ensuring the protection of sensitive technologies.
The People’s Republic of China’s focused efforts to develop critical technologies for military purposes have raised concerns. Today, the Treasury Department will release the Final Rule to implement Executive Order 14105, addressing U.S. investments in national security technologies and products of concern countries. This rule aims to regulate transactions involving technologies crucial for military, cybersecurity, surveillance, and intelligence applications.
Key highlights of the Final Rule include:
1. Prohibition and notification requirements for U.S. persons engaging in certain transactions involving semiconductors, quantum technologies, and artificial intelligence.
2. Specific categories of investment transactions with connections to sensitive technologies and products.
3. Technical details on semiconductors, quantum technologies, and artificial intelligence relevant to the program’s scope.
The program aligns with existing export control tools, preventing U.S. investments from aiding the development of critical technologies in countries of concern. Partnerships with allies and bipartisan support from Congress demonstrate a unified effort to regulate outbound investments effectively.
In conclusion, this targeted action is essential for national security while upholding America’s commitment to open investment. We encourage compliance with the Final Rule, which will be in effect from January 2nd, 2024. Thank you for your participation and engagement.
