U.S. Outbound Investment Program

On August 9, 2023, U.S. President Biden issued an executive order providing for a new national security program meant to protect technologies that are “critical to the next generation of military innovation.”

The executive order, in connection with an Advance Notice of Proposed Rulemaking (ANPRM) from the U.S. Department of Treasury, specifically addresses outbound U.S. investments in “certain national security technology” sectors in the People’s Republic of China (PRC), identified as a “country of concern.” These sectors include semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems.

The way in which this order is implemented directly involves ILPA members. We’ve begun a thorough review to understand the impact of the order and plan a response that ensures the best possible outcome for ILPA members and the industry.

In the coming days, we will provide additional analysis for our members on the key components of the proposed rulemaking effort and our plan for how we respond regarding the scope and requirements of the national security program, particularly understanding its potential unintended consequences.

We look forward to working alongside and engaging with our members, industry partners, the U.S. Department of Treasury and other agencies to collectively move this conversation forward.

Below, find resources that may be helpful to your own understanding of this action as ILPA conducts its analysis.

August 10 statement from ILPA on Executive Order "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern"

August 10 ILPA member update on the Executive Order, including high-level insights that address some of the most immediate member questions

U.S. President's statement on the Executive Order

Official text of the Executive Order

White House letters to the House and Senate on the Executive Order

Treasury's statement announcing the Advance Notice of Proposed Rulemaking (ANPRM) and seeking public comment related to the implementation of the Executive Order

Landing page providing an overview of the program to implement and administer the Executive Order

A five-page overview of the Executive Order and Treasury Department's ANPRM