Orrick, Herrington & Sutcliffe LLP’s Post

play: President Joe Biden has signed an executive order that restricts certain US investments in sensitive technology in China and requires government notification of funding in other tech sectors. The order focuses on three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. It aims to address national security risks while maintaining trade relations with China. The order is expected to be implemented next year and will not affect existing investments. - Artificial Intelligence topics! #ai #artificialintelligence #intelligenzaartificiale

From Jones Day: The proposed regulations would either outright prohibit or require notice to the government of certain investments in the semiconductors and microelectronics, quantum information technologies, or artificial intelligence ("AI") sectors in a "country of concern," currently defined as China and its administrative regions of Hong Kong and Macau. #treasurydepartment #artificialintelligence #china #nationalsecurity #outboundinvestment

U.S. To Address Investments in National Security Technology | Clark Hill PLC - JDSupra: On August 9, President Biden issued Executive Order 14105 to establish a new program addressing US investments in national security technologies in "Countries of Concern." The program focuses on semiconductors, quantum information technologies, and artificial intelligence. The Department of Treasury will issue new regulations identifying prohibited transactions and U.S. persons will need to notify the Secretary regarding certain transactions. The Treasury Department has also issued an Advance Notice of Proposed Rulemaking seeking public comments on various issues related to the regulations. It is important for investors to review the existing U.S. export controls and the CHIPS Act separately for compliance. The Treasury Department is considering exceptions for certain investment types and is reviewing various transactions that may be exempt in the final regulation. The Department is currently in the public comment period before issuing a final regulation. - Artificial Intelligence topics! #ai #artificialintelligence #intelligenzaartificiale

Expanding on my previous post and in response to Michael J. Stattelman's question, which I feel is a great question and in this case also the "right" question to ask, here are some of the secondary and tertiary impacts of the rule pertaining to US Investments in Certain National Security Technologies and Products in Countries of Concern that I foresee from the legal and business perspective: 🔹 Increasing no of disputes due to investors exiting from existing ventures. 🔹 Loss of talent and business partners due to strategic realignment, which can lead to loss of expertise and challenges in maintaining business continuity. 🔹 Loss of opportunities and direct financial loss due to the revocation or non-qualification of incentives, benefits, or tax exemptions tied to investment thresholds and investor portfolios, which may have only been possible with the support of such US investors. 🔹 Financial loss due to the need to replace these investors or partners, and managing the loss of their tangible contributions, which could have been vital for business continuity and product development. 🔹 Redirection of capital, which would negatively impact China, Hong Kong, and Macau, but pave the way for other emerging markets, such as Southeast Asia, to catch up and attract these investments opportunities. 🔹 Rise of IP disputes where investments are withdrawn or restricted, and concerns surrounding the use of certain technologies, products, or innovations in existing or upcoming ventures will have to be terminated or renegotiated.  🔹 If China decides to apply retaliatory measures, it may create a ripple effect, prompting other countries to respond similarly should the list expands. We have seen examples of this with the retaliatory tariffs and trade restrictions imposed on US exports by countries such as China, India, Canada, and Turkey. 🔹 Rise in legal costs as law firms capitalise on the need for extensive due diligence and heightened regulatory support, as well as increased demand for advisory services. (To avoid any confusion, our fees remain competitive 😇 We leverage on legal tech to automate time-consuming tasks) 🔹 Increased need for global mobility and immigration legal support as affected talents from the concerned countries relocate to other markets. 🔹 Perhaps this move would also retain or redirect such investments back to the US to grow the domestic economy and tech industry. 🔹 The new regulation may prompt other governments to reconsider existing arrangements and choice of partnerships and tenders awarded to develop their military technologies, as well as influence investors to rethink their strategies and choice of markets for investment in those 3 sectors. I realise it was impossible for me to respond fully in a comment due to word limit, so here it goes. This will be an interesting cross-disciplinary discussion with economists, tech, trade, and investment experts. What do you think of the above? I would love to hear from you too.

China is shoring up the great firewall for the AI age China faces a problem familiar to dictatorships throughout history: how to strike a balance between growth-boosting innovation, which thrives in a free society, and the paranoia of an authoritarian state. Its leader, Xi Jinping, wants the country to become a hyper-advanced economy. His government is aggressively promoting the commercialisation of high technologies it likes, from electric vehicles to quantum computing.At the same time, it is tightening the screws on those it disapproves of. In ... Read more here: https://lnkd.in/dzVCBXQU . . Like 💝 Comment below ⏬ Share ✅ For More Such Updates Follow Us @qnewshub @qnewscrunch . . #qnewshub #qnewscrunch #Business

"The order covers advanced computer chips, micro electronics, quantum information technologies and artificial intelligence. Senior administration officials said that the effort stemmed from national security goals rather than economic interests, and that the categories it covered were intentionally narrow in scope. The order seeks to blunt China’s ability to use U.S. investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations’ economies." #nationalsecurity #ai #artificialintelligence #quantumcomputing #trade #economics #traderelations #executiveorders #security #informationtechnology #law #government #compliance https://lnkd.in/e2iH6u6u

Earlier today, the U.S. Department of the Treasury unveiled the latest version of its outbound investment screening regulations. The proposed rule will prohibit certain investments and require notifications for other investments that involve entities located in or subject to the jurisdiction of the People’s Republic of China and engage with national security related technologies, including semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence (AI) systems. The proposed rule is not yet final, and interested parties can provide input during the comment period, which ends on August 4, 2024. #NationalSecurity #CFIUS #ExportControls #AI The proposed rule can be found at: https://lnkd.in/e4Zzvz9z