Your Company Could Be Subject to Chinese Investment Ban — and You May Not Know

President Joe Biden’s August executive order on investment in certain national securities technologies refers to “countries of concern,” but the forthcoming regulations implementing the order are aimed squarely at one country — China (including Hong Kong and Macau).

Even if your company does not intend to invest in a Chinese entity, these regulations may have a far-reaching impact on a broader range of investments. As the EO imposes the burden to determine if an investment falls within its restrictions, any transaction involving national security technologies and products covered by the order must be carefully examined to ensure that the investment does not violate the law.