In the News: Sensitive Technologies Targeted in US Outbound Investment to China; New Rules Kill Small Investment Funds; and Medical IPOs under Close Scrutiny

August 17, 2023 | BY

Brian Chan

Biden's new Executive Order simplifies the proposed "Reverse CFIUS" review process of outbound investment into China; Small hedge funds in China are threatened with a minimum asset requirement; and Shanghai Stock Exchange further scrutinizes medical companies as an anti-corruption campaign intensifies.

Promulgated: 2023-08-09

science factory china production LED technology. Credit: Artwell/Adobe Stock

|

U.S. Specifies Industries to be Screened for Outbound Investment to China

According to a Reuters report, President Biden signed an executive order on August 9, 2023 that will restrict outbound U.S. investment in China (including Hong Kong and Macau) in some sensitive technologies. The order aims to prevent U.S. capital and expertise from assisting China's development of technologies that could support its military modernization. The focus is on specific technology sectors within the semiconductors and microelectronics, artificial intelligence, and quantum computer industries. The order imposes prohibitions and notification requirements for private equity, venture capital, joint ventures and greenfield investments in these industries.

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]