• White House issued executive order EO 14105, Addressing United States investments in certain national security technologies and products in countries of concern.
• Goal to facilitate legitimate cross-border investments while preventing Chinese jurisdictions, including Hong Kong, from exploiting US technological investments.

Investment Restriction

• Authorizes US Treasury to regulate certain US investments into countries of concern.
• Applies to investments in entities engaged in activities of sensitive technologies critical to national security: semiconductors and microelectronics, quantum information, AI.
• Identifies China and Hong Kong, Macau special administrative regions under concern.
• Directs US Treasury to issue regulations that prohibit US persons from engaging in transactions involving certain technology, products that pose national security threat.
• Requires US persons to notify US Treasury of certain transactions involving certain tech and products that may contribute to the threat to the national security of the US.

Senate Brown Remarks

• Senate Brown issued remarks in support of the executive order to limit investment.
• Stated that Senators are working to pass Outbound investment transparency act.
• Urged Biden administration to implement executive order swiftly to ensure corporate investment does not help China develop technologies that will be used against US.

HK Treasury Remarks

• HK Treasury recommended EO be withdrawn, criticized US, called order a series of measures unreasonably targeting HK, undermines normal trade, investment activities.
• Argued will create further uncertainties for global economic recovery and growth.
• Expressed strong objection, disapproval of measure restricting investment in China.
• Violates principles of market economy and fair competition, undermines international economic and trade order and jeopardizes the economic and business interests of US.

US Treasury Rulemaking Notice

• US Treasury will release an advanced notice of proposed rulemaking (ANPRM).
• Will include proposed definitions to elaborate the scope of the investment restriction.
• A 45-day comment period will open to the public after publication in federal register.