Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern

Executive Order Number: 14105
President: Joseph R. Biden Jr.
Signed: August 9, 2023
Published: August 11, 2023
Source: Federal Register
Original Document: https://www.govinfo.gov/content/pkg/FR-2023-08-11/pdf/2023-17449.pdf

AI-Generated Summary

Executive Order 14105: Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern

Purpose

The purpose of Executive Order 14105, signed by President Joseph R. Biden Jr. on August 9, 2023, is to address the national security threat posed by countries of concern advancing sensitive technologies and products critical to their military, intelligence, surveillance, or cyber-enabled capabilities. The order aims to regulate United States investments that could contribute to these advancements.

Key Actions or Directives

Declaration of National Emergency: The President declares a national emergency to deal with the threat posed by countries of concern exploiting U.S. investments.
Regulations by the Secretary of the Treasury:
The Secretary of the Treasury, in consultation with the Secretary of Commerce and other relevant agencies, will issue regulations requiring U.S. persons to notify the Treasury of certain transactions involving covered foreign persons (notifiable transactions) and prohibiting certain other transactions (prohibited transactions).
These regulations will identify categories of notifiable and prohibited transactions based on their potential to contribute to or pose a threat to national security.
Duties of the Secretary: The Secretary is tasked with various responsibilities, including communication with Congress and the public, consultation with other agencies, engagement with allies, and investigation of violations.
Program Development and Assessment: The Secretary, in consultation with relevant agencies, will assess and potentially amend the regulations within one year and periodically thereafter.
Reports to the President and Congress: The Secretary will provide annual assessments to the President and recurring reports to Congress on the effectiveness of the measures and any necessary modifications.

Significant Changes to Policy or Law

New Regulatory Framework: The order introduces a new regulatory framework to control U.S. investments in sensitive technologies and products in countries of concern.
Expansion of National Security Controls: It expands the scope of national security controls to include outbound investments, a shift from traditional focus on inbound investments.

Potential Impacts

Government Agencies: Agencies such as the Department of the Treasury and the Department of Commerce will have increased responsibilities in monitoring and regulating investments. Other agencies like the Departments of State, Defense, and Energy will be involved in consultations.
Citizens and Businesses: U.S. persons and businesses will face new reporting requirements and prohibitions on certain investments, potentially affecting their investment strategies and international business operations.
International Relations: The order may affect relations with countries identified as concerns, potentially leading to retaliatory measures or diplomatic tensions. It also aims to engage allies and partners to address these national security risks collectively.

Main Stakeholders Affected

U.S. Persons and Businesses: Especially those involved in investments in semiconductors, microelectronics, quantum information technologies, and artificial intelligence.
Countries of Concern: As identified in the order's Annex, these countries may face restrictions on their ability to access U.S. technology and investment.
Government Agencies: Particularly the Department of the Treasury, Department of Commerce, and other involved agencies.
Allies and Partners: Countries that may collaborate with the U.S. in addressing the identified national security risks.

Notable Legal, Constitutional, or Political Implications

Legal Basis: The order is grounded in the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA), providing a legal framework for controlling economic transactions during national emergencies.
Constitutional Authority: The President exercises authority vested by the Constitution and laws of the United States, specifically in the realm of foreign affairs and national security.
Political Implications: The order may be seen as a response to geopolitical tensions, particularly with countries advancing in sensitive technologies. It could lead to debates on the balance between national security and economic openness.
Potential for Legal Challenges: The broad scope of the regulations and the declaration of a national emergency might be subject to legal challenges regarding their constitutionality and impact on businesses.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.