Treasury Department Soliciting Comments on Proposal to Prohibit Tech Deals in Countries of Concern

The Department of the Treasury is seeking comments on its proposed regulations that would address potential national security issues posed by U.S. investments in locations deemed as countries of concern under an executive order on national security technologies and products.

The agency issued a notice of proposed rulemaking in compliance with Executive Order 14105, under which it is required to create regulations banning the involvement of U.S. persons in technology-related transactions that could impact U.S. national security and requiring them to report such deals to the department.

Comments of the NPRM are due Aug. 4, the Treasury Department said.

The White House identified China as a country of concern, along with its special administrative regions Hong Kong and Macau.

Technologies covered under the executive order are semiconductors and microelectronics, quantum information technologies and artificial intelligence.

According to Paul Rosen, assistant secretary of the treasury for investment security, the proposed rule will prevent U.S. resources from being used to advance the capabilities of countries that could threaten national security.