The decision, derived from an executive order of the president Joe Biden, seeks to “defend American national security by protecting critical technologies for the next generation of military innovations,” Treasury said.
He Advance Notice of Proposed Regulation (ANPRM) arranged this Wednesday by the Treasure aims to gather public comments related to the implementation of the Executive Order (OE) of August 9, issued by Biden, Regarding the Addressing of United States Investments in Certain National Security Technologies and Products in “Countries of Interest”.
In the Executive Order, the US president identified as “Countries of interest” the People’s Republic of Chinathe Special Administrative Region of Hong Kong and the Special Administrative Region of Macau.
Trade war and national security
Treasury notes that EO anticipates “a new national security program” and subject-specific that “will be implemented and administered” by the department itself “in consultation with other relevant executive departments and agencies.”
“This specific action will complement our existing export control and inbound investment screening tools, and protect our national security while maintaining our long-standing commitment to open investment,” they state.
In particular, the Executive Order directs the Secretary of the Treasury “to issue regulations” that “prohibit US citizens from engaging in certain transactions involving certain technologies and products that pose a particularly serious threat to the national security of the United States.”
In addition, it also orders to demand that “the people of the USA notify the Treasure of certain transactions involving certain technologies and products that may contribute to the threat to the national security of the United States”.
Semiconductors, quantum computing and artificial intelligence
The EO identifies three types of technologies and products linked to national security that will be at the center of the program: semiconductors and microelectronics, technologies of quantum information and artificial intelligence.
According to the communication provided by the Treasury Department, the US “benefits from an open investment climate” and ensures that “this new program will not change that.” “It is strictly aimed at investments in highly sensitive technologies and products in order to protect the national security” of the country, they say.
Finally, the Treasury notes that “certain transactions are expected to be exempted,” which could include publicly traded instruments and intra-company transfers from US parent companies to subsidiaries.
Source: Ambito
