President Biden's executive order, driven by national security concerns, empowers regulations to thwart foreign entities from accessing U.S. technology pivotal to their military and intelligence ambitions, safeguarding American interests.
"American dollars and expertise shouldn't go toward building up the Chinese government's military and intelligence capabilities," said Ohio senator Sherrod Brown, a vocal proponent of the executive order. "As we work to pass the Outbound Investment Transparency Act into law, the Administration must implement this order swiftly to ensure that U.S. corporate investment doesn't help China develop technology that will be used against us."
In a move aimed at bolstering national security, President Joseph R. Biden Jr. has issued an executive order utilizing the authority vested in him by the Constitution and various U.S. laws, including the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA). The order comes in response to growing concerns about foreign countries strategically advancing sensitive technologies and products crucial to their military, intelligence, surveillance, and cyber capabilities, thereby posing potential threats to the United States.
The President's executive order highlights the pressing issue of certain countries breaking down the barriers between their civilian and military sectors and acquiring cutting-edge technologies, a trend that could have far-reaching implications for U.S. national security. To counteract these emerging challenges, the President has declared a national emergency and issued a series of directives.
One notable aspect of the executive order is the call for the development of new regulations by the Secretary of the Treasury. These regulations would require U.S. entities to notify the government of specific transactions involving covered foreign persons, and they would prohibit certain transactions altogether. The goal is to ensure that American dollars and expertise do not contribute to the bolstering of foreign governments' military and intelligence capabilities, especially those with potentially adversarial intentions.
To effectively implement the order, the Secretary of the Treasury will collaborate closely with other relevant agencies. The process will involve communication with Congress, consultations on industry engagement and analysis, assessment of implications for national security technologies and products, engagement with international allies, and thorough investigations of potential violations. Additionally, the Secretary will regularly review the efficacy of the new regulations to ensure they remain aligned with the evolving landscape of technological advancements and foreign policy.
Crucially, the order outlines key terms like "country of concern," "covered foreign person," and "covered national security technologies and products." This clarifies the scope of the regulations and the sectors they are intended to cover. The Secretary is granted the authority to take a range of actions necessary to uphold the order's objectives, such as issuing rules and regulations, conducting transaction investigations, and referring potential criminal violations to the Attorney General. It is underscored that the order's execution will be consistent with applicable laws and contingent upon the availability of appropriations.
As the government works to implement the order, close attention will be paid to ensuring that American interests are safeguarded against potential technological threats that may arise from countries pursuing dual-use technologies for both civilian and military purposes.