US-China Trade: Outbound Investment Control Regime in Sensitive Technologies

中美贸易：敏感技术的对外投资管制制度

Executive Order on Outbound Investment

有关对外投资的行政令

A new executive order signed by President Biden in August 2023 restricts outbound investment to China in several critical cutting-edge technologies with military, surveillance, and cyber-enabled capabilities, deemed critical to US national security interests. Citing an “unusual and extraordinary threat” to the national security of the US, Biden declared a national emergency alongside the executive order.

美国总统拜登于2023年8月签发一项新的行政令，在一些被认为对美国国家安全利益至关重要的、具有军事、监控和网络功能的关键尖端技术方面，限制对中国的对外投资。拜登以美国国家安全面临“非常规和特殊的威胁”为由，在发布行政令的同时宣布全国进入紧急状态。

The latest move in a series of US policies aimed at limiting the sharing of advanced technology with, the executive order is apparently designed to initiate the process of enacting restrictions on US investment in China in three “sensitive” technology sectors, focusing on specific end uses of these emerging technologies,  and restricting military applications of (1) semiconductors and microelectronics, (2) quantum information technologies and (3) artificial intelligence systems (“AI”).

作为美国一系列旨在限制与中国分享先进技术的政策中的最新举措，该行政令显然旨在启动对美国在三大“敏感”技术领域对华投资的限制程序，重点关注这些新兴技术的特殊终端用途，并限制（1）半导体和微电子、（2）量子信息技术、以及（3）人工智能系统（“AI”）的军事应用。

US Investor Restrictions  

对美国投资者的限制

Under the executive order, US investors, including private equity, venture capital and joint venture firms, will be restricted from new investments in Chinese semiconductor and quantum computer companies. In this regard, it is noted that certain US investors have already taken actions, such as Sequoia Capital sawing off its Chinese branch[1]. Furthermore, Americans doing business in China must notify the US government of any direct investment in AI and the semiconductor field. Investment in technology destined for military or surveillance is banned while investment in less sensitive areas are permitted with government notification.

根据该行政令，包括私募股权、风险投资和合资公司在内的美国投资者将被限制对中国半导体和量子计算机公司进行新的投资。在这方面，我们注意到某些美国投资者已经采取了行动，如红杉资本（Sequoia Capital）已裁撤其中国分支机构。此外，在中国经商的美国人必须向美国政府通报任何在人工智能和半导体领域的直接投资。禁止投资用于军事或监控的技术，而允许投资较为不敏感的领域，但必须向政府通报。

Narrowly Limited Scope of Investment Controls

投资管制的范围受到严格限制

The program of outbound investment restrictions proposed by the executive order follows on other regulatory regimes such as traditional US trade export controls, US sanctions programs and inbound foreign direct investment controls yet creates another level of controls. The proposed rules focus on limiting access to US capital flows and intangible benefits such as know-how, market access, investment and talent networks, and other managerial expertise.

行政令提出的对外投资限制计划是在传统的美国贸易出口管制、美国制裁计划和外商直接投资管制等其他监管制度的基础上提出的，但它形成了另一个层面的管制。拟议规定主要集中在限制对美国的流动资本以及无形利益的获取，如技术秘诀、市场准入、投资和人才网络，以及其他管理能力。

The executive order states that it intends to narrowly limit the scope of the proposed investment restrictions to preventing China’s military advancement and reduce the US national security risk, rather than causing China economic harm. Also, heated lobbying efforts from the private sector has also limited the scope of the proposed investment controls.

该行政令指出，它打算将拟议的投资限制范围严格限制在防止中国军事进步和降低美国国家安全风险上，而不是对中国造成经济损害。此外，私营部门的激烈游说也限制了拟议投资管制的范围。

Investors who violate those rules may face civil penalties (with criminal penalties being referred to the US Justice Department) and fines, and be compelled to divest their stakes. The rules do not target less involved investment in publicly traded securities such as Chinese stocks and bonds.

违反这些规定的投资者可能面临民事处罚（刑事处罚将提交美国司法部处理）和罚款，以及被迫撤资。这些规定并不针对涉及面较小的公开交易证券投资，如中国股票和债券。

Timing - Public Notice Before Implementation

时间安排-实施前的公示

Tasked with implementation of the executive order, Treasury has issued an advance public notice with details on the proposed rules and solicited public comment. The outward investment program will be implemented after this public notice and feedback period (ending September 28, 2023). No date has been set yet for the actual rules to take effect and it may take months before the final rules are implemented.

负责执行该行政令的财政部已经发布了关于拟议规则详细的事先通知，并征求了公众意见。对外投资计划将在公示和反馈期（截至2023年9月28日）后实施。实际规则的生效日期尚未确定，最终规则的实施可能仍需要几个月的时间。 

Proposed Executive Order Outbound Investment Controls:

拟议的对外投资管制行政令：

a. Semiconductors

半导体

With respect to investment bans in the semiconductor industry, the US Treasury is considering banning US investment in the same areas covered by the Commerce Department’s October 2022 semiconductor export controls.

在半导体领域的投资限制方面，美国财政部考虑对商务部2022年10月发布的半导体出口管制所涉及的相同领域设置投资禁止。

Specifically, Treasury is planning to prohibit US entities from investing in Chinese technology related to the design and manufacture of advanced logic and memory chips, the installation of supercomputers powered by advanced chips, and the manufacture of these advanced chips.

具体而言，财政部计划禁止美国实体投资涉及先进逻辑芯片和存储芯片的设计和制造、先进芯片驱动的超级计算机的安装，以及有关上述先进芯片制造的中国技术。

b. Artificial Intelligence:

人工智能

The executive order's restrictions on AI investment are significant not so much for its denial of US capital to Chinese AI startups, as much as they foreshadow the likelihood of further US investment restrictions and export controls on AI for China.

该行政令对人工智能投资的限制影响重大，不仅因其阻止了美国资本对中国人工智能初创企业的投入，更因其预示着美国将对中国人工智能的进一步投资限制和出口管制。

The scope of these likely AI export controls will be in part determined by the comments which the Treasury receives on its advance notice. As they formulate the executive order, the Biden Administration is trying to determine how to differentiate AI end uses that pose a national security risk from AI used for everyday business reasons.

拟议的人工智能出口管制范围将部分取决于财政部就其事先通知收集的意见。在制定行政令时，拜登政府试图明确如何区分终端用途中存在国家安全风险的人工智能和基于日常商业原因使用的人工智能。

c. Quantum Information Technologies:

量子信息技术：

Outbound investment controls on quantum information technologies likely foreshadow complementary quantum export controls on China.

对量子信息技术的对外投资管制预示着对中国量子信息技术出口的补充性管制措施。

Otherwise, restrictions on quantum may be less significant than restrictions on semiconductor and AI investment in China given the current lack of US investment in Chinese companies developing quantum and practical applications of quantum computers are very rare.

在其他方面，鉴于目前美国对研发量子信息技术的中国公司缺乏投资，且量子计算机的实际应用非常罕见，对量子信息技术的限制可能不及对中国半导体和人工智能的投资限制重要。

More Restrictions to Come?

未来会有更多限制吗？

When it comes to protecting advanced technologies critical to US national security, the Biden administration speaks of maintaining a “small yard with a high fence”. Even so, US lawmakers are demonstrating an interest in expanding the restrictions and broadening the outbound investment screen to include key sectors identified by the Biden administration including semiconductors, AI, robotics, biotechnology, autonomous vehicles, advanced aviation, and energy, and to additional countries, including Cuba, Iran, North Korea, Russia, and Venezuela.

在保护对美国国家安全至关重要的先进技术方面，拜登政府提出保持“小院高墙”策略。但即便如此，美国立法者仍表现出对加强限制措施和扩大对外投资监管范围的兴趣，以纳入拜登政府确定的包括半导体、人工智能、机器人、生物技术、自动驾驶汽车、先进航空和能源等在内的关键领域，以及古巴、伊朗、朝鲜、俄罗斯和委内瑞拉等更多国家。

These expanded export controls will likely lead to increased and focused enforcement actions targeting Chinese entities and further accelerate the greater separation of the US and Chinese economies or “decoupling”.

这些被扩展的出口管制措施可能导致针对中国实体的大量且密集的执法行动，进一步加速中美经济的分离或“脱钩”。

While some lawmakers seek a more complete “decoupling”, others argue that when access to foreign technology know-how is eliminated, these controls could just contribute to Chinese growth and self-sufficiency.

虽然部分立法者寻求更彻底的“脱钩”，但有观点认为，若外国专有技术的获取途径被切断，这些管制措施反而将促进中国的经济增长和独立自足。

Suggested Risk Mitigation Measures:

风险缓释措施建议：

Given these recent measures, sensitive technology companies in the US involved in outbound investments should consider the risk factors and undertake risk mitigating steps including:

鉴于美方近期采取的这些措施，美国的敏感技术领域公司参与对外投资时应考虑风险因素，并采取以下风险缓释措施：

a. Clarify company’s current and potential investments status and US persons involvement in China

说明公司目前和潜在的投资状况，以及美国主体在中国的参与情况

b. Identify company’s investments that may fall within the  proposed executive order regime’s outward investment regime’s ambit

识别公司的投资可能属于拟议行政令对外投资限制的范围

c. Apply risk mitigation measures in company’s investments in the sensitive technology sectors and areas

对公司在敏感技术领域的投资采取风险缓释措施

On the flip side of the same coin, Chinese companies that fall into those restricted categories may want to review their shareholders base and future financing plans to evaluate the potential impacts. There may be opportunities for non-US investors to gain access to investment into those Chinese companies from which the US investors are withdrawing. It is advisable for non-US investors to engage legal counsel to investigate and conduct due diligence before such investment, in light of the fast-changing CFIUS and other relevant rule and regulation.

换言之，属于受限投资范围的中国公司可能需要重新审视其股东基础和未来融资计划，以评估潜在影响。对非美国投资者而言，他们将获得对美国投资者撤资的中国公司的投资机会。鉴于美国外国投资委员会及其他相关规则在迅速变化，我们建议非美国投资者在进行此类投资前先聘请法律顾问开展尽职调查。

 

[1] https://www.economist.com/business/2023/06/08/why-sequoia-capital-is-sawing-off-its-chinese-branch