U.S. Tech Investment Rules (E.O. 14105)

Summary

Stops U.S. money from helping certain countries build advanced technology that could harm America's safety.

What problem does this solve?

Some countries use American investments to build powerful military and spy technologies that threaten U.S. safety. This order creates rules to stop or track U.S. money going to these tech areas in those countries.

What does this order do?

Declares a national emergency

Identifies the advancement of sensitive technologies by 'countries of concern' as an unusual and extraordinary threat to the national security of the United States.

Creates new investment rules

Directs the Treasury Secretary to issue regulations that either prohibit or require notification for certain U.S. investments in specific technology sectors in 'countries of concern'.

Targets key technology sectors

Focuses on investments in semiconductors and microelectronics, quantum information technologies, and artificial intelligence that are critical to military and intelligence capabilities.

Requires ongoing program review

Mandates the Treasury Secretary to assess and potentially update the rules within one year of them taking effect, and to conduct periodic reviews thereafter.

Prohibits avoiding the rules

Makes it illegal to try to evade or avoid the investment prohibitions, including by knowingly directing others to make transactions that would be prohibited for a U.S. person.

Who does this affect?

U.S. investors and companies
Technology companies in 'countries of concern'
U.S. federal agencies

What is the real world impact?

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Protects national security

Prevents U.S. money and knowledge from helping potential rival countries develop advanced military, intelligence, and cyber technologies that could be used against the United States.

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Encourages allies to act

Creates a framework for the U.S. to work with allied nations, encouraging them to adopt similar investment screening measures to collectively address the security risks.

When does this start?

This order takes effect immediately on August 9, 2023, and directs the Treasury Department to create specific rules for investments.

Program Review

Within one year of the new investment rules taking effect, the Secretary of the Treasury must review them and decide if changes are needed.

Report to the President

Within one year of the new rules taking effect, and at least once a year after that, the Secretary must report to the President on the program's effectiveness.