The Biden Administration released its highly anticipated "Executive Order on Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern" on August 9. The executive order places increased importance on due diligence when investing in specific foreign countries. It regulates outbound investments in China, with a focus on key technologies critical to safeguarding U.S. national security. It also directs the U.S. Treasury Department and other agencies to promulgate regulations that will place restrictions on investments within three sectors of China's economy: semiconductors and microelectronics, quantum information technologies, and technologies involved with artificial intelligence (AI).

The full implementation of the regulations is a long way away, as the Treasury Department released its Advanced Notice of Proposed Rulemaking (ANPRM) in parallel with the executive order. The timeline provides for a 45-day public comment period, to be followed by draft regulations issued by Treasury and a subsequent comment opportunity prior to the finalization of the regulations.