Brandon Van Grack, Charles Capito, James Brower and Jonathan Babcock authored an article for Lawfare that discusses President Biden’s executive order addressing United States investments in companies that engage with certain technologies and products located in the People’s Republic of China.
“Intended to fill a perceived regulatory gap, the program is designed to hinder the development of technologies that are regarded as supporting China’s military modernization, threaten U.S. national security, and—according to the Biden administration—benefit from U.S. investments and expertise. Conceptually, the new program prohibits certain investments and requires notifications for others,” the authors wrote. “The birth of a new regulatory regime is usually important, and this program is no exception. The announcement is also noteworthy because the program is not in its final form. Key terms are undefined, and necessary elements are incomplete. In their place are scores of questions posed to the public. Key constituencies in Congress, the administration, and the investment and technology sectors are sure to weigh in as the rulemaking process commences.”
The article explores the origins of the program, how it will work, key implications and what to expect next.