Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern
| Published date | 11 August 2023 |
| Record Number | 2023-17449 |
| Citation | 88 FR 54867 |
| Court | Executive Office Of The President |
| Section | Presidential Documents |
Presidential Documents
54867
Federal Register
Vol. 88, No. 154
Friday, August 11, 2023
Title 3—
The President
Executive Order 14105 of August 9, 2023
Addressing United States Investments in Certain National Se-
curity Technologies and Products in Countries of Concern
By the authority vested in me as President by the Constitution and the
laws of the United States of America, including the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emer-
gencies Act (50 U.S.C. 1601 et seq.) (NEA), and section 301 of title 3,
United States Code,
I, JOSEPH R. BIDEN JR., President of the United States of America, find
that countries of concern are engaged in comprehensive, long-term strategies
that direct, facilitate, or otherwise support advancements in sensitive tech-
nologies and products that are critical to such countries’ military, intelligence,
surveillance, or cyber-enabled capabilities. Moreover, these countries elimi-
nate barriers between civilian and commercial sectors and military and
defense industrial sectors, not just through research and development, but
also by acquiring and diverting the world’s cutting-edge technologies, for
the purposes of achieving military dominance. Rapid advancement in semi-
conductors and microelectronics, quantum information technologies, and
artificial intelligence capabilities by these countries significantly enhances
their ability to conduct activities that threaten the national security of the
United States. Advancements in sensitive technologies and products in these
sectors will accelerate the development of advanced computational capabili-
ties that will enable new applications that pose significant national security
risks, such as the development of more sophisticated weapons systems,
breaking of cryptographic codes, and other applications that could provide
these countries with military advantages.
As part of this strategy of advancing the development of these sensitive
technologies and products, countries of concern are exploiting or have the
ability to exploit certain United States outbound investments, including
certain intangible benefits that often accompany United States investments
and that help companies succeed, such as enhanced standing and promi-
nence, managerial assistance, investment and talent networks, market access,
and enhanced access to additional financing. The commitment of the United
States to open investment is a cornerstone of our economic policy and
provides the United States with substantial benefits. Open global capital
flows create valuable economic opportunities and promote competitiveness,
innovation, and productivity, and the United States supports cross-border
investment, where not inconsistent with the protection of United States
national security interests. However, certain United States investments may
accelerate and increase the success of the development of sensitive tech-
nologies and products in countries that develop them to counter United
States and allied capabilities.
I therefore find that advancement by countries of concern in sensitive tech-
nologies and products critical for the military, intelligence, surveillance,
or cyber-enabled capabilities of such countries constitutes an unusual and
extraordinary threat to the national security of the United States, which
has its source in whole or substantial part outside the United States, and
that certain United States investments risk exacerbating this threat. I hereby
declare a national emergency to deal with this threat.
Accordingly, I hereby order:
VerDate Sep<11>2014 20:49 Aug 10, 2023 Jkt 259001 PO 00000 Frm 00003 Fmt 4705 Sfmt 4790 E:\FR\FM\11AUE0.SGM 11AUE0
lotter on DSK11XQN23PROD with FR_PREZDOC0
54868
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Presidential Documents
Section 1. Notifiable and Prohibited Transactions. (a) To assist in addressing
the national emergency declared in this order, the Secretary of the Treasury
(Secretary), in consultation with the Secretary of Commerce and, as appro-
priate, the heads of other relevant executive departments and agencies (agen-
cies), shall issue, subject to public notice and comment, regulations that
require United States persons to provide notification of information relative
to certain transactions involving covered foreign persons (notifiable trans-
actions) and that prohibit United States persons from engaging in certain
other transactions involving covered foreign persons (prohibited transactions).
(b) The regulations issued under this section shall identify categories
of notifiable transactions that involve covered national security technologies
and products that the Secretary, in consultation with the Secretary of Com-
merce and, as appropriate, the heads of other relevant agencies, determines
may contribute to the threat to the national security of the United States
identified in this order. The regulations shall require United States persons
to notify the Department of the Treasury of each such transaction and
include relevant information on the transaction in each such notification.
(c) The regulations issued under this section shall identify categories
of prohibited transactions that involve covered national security technologies
and products that the Secretary, in consultation with the Secretary of Com-
merce and, as appropriate, the heads of other relevant agencies, determines
pose a particularly acute national security threat because of their potential
to significantly advance the military, intelligence, surveillance, or cyber-
enabled capabilities of countries of concern. The regulations shall prohibit
United States persons from engaging, directly or indirectly, in such trans-
actions.
Sec. 2. Duties of the Secretary. In carrying out this order, the Secretary
shall, as appropriate:
(a) communicate with the Congress and the public with respect to the
implementation of this order;
(b) consult with the Secretary of Commerce on industry engagement and
analysis of notified transactions;
(c) consult with the Secretary of State, the Secretary of Defense, the
Secretary of Commerce, the Secretary of Energy, and the Director of National
Intelligence on the implications for military, intelligence, surveillance, or
cyber-enabled capabilities of covered national security technologies and prod-
ucts and potential covered national security technologies and products;
(d) engage, together with the Secretary of State and the Secretary of Com-
merce, with allies and partners regarding the national security risks posed
by countries of concern advancing covered national security technologies
and products;
(e) consult with the Secretary of State on foreign policy considerations
related to the implementation of this order, including but not limited to
the issuance and amendment of regulations; and
(f) investigate, in consultation with the heads of relevant agencies, as
appropriate, violations of this order or the regulations issued under this
order and pursue available civil penalties for such violations.
Sec. 3. Program Development. Within 1 year of the effective date of the
regulations issued under section 1 of this order, the Secretary, in consultation
with the Secretary of Commerce and, as appropriate, the heads of other
relevant agencies, shall assess whether to amend the regulations, including
whether to adjust the definition of ‘‘covered national security technologies
and products’’ to add or remove technologies and products in the semi-
conductors and microelectronics, quantum information technologies, and
artificial intelligence sectors. The Secretary, in consultation with the Sec-
retary of Commerce and, as appropriate, the heads of other relevant agencies,
shall periodically review the effectiveness of the regulations thereafter.
Sec. 4. Reports to the President. Within 1 year of the effective date of
the regulations issued under section 1 of this order and, as appropriate
VerDate Sep<11>2014 20:49 Aug 10, 2023 Jkt 259001 PO 00000 Frm 00004 Fmt 4705 Sfmt 4790 E:\FR\FM\11AUE0.SGM 11AUE0
lotter on DSK11XQN23PROD with FR_PREZDOC0
54869
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Presidential Documents
but no less than annually thereafter, the Secretary, in coordination with
the Secretary of Commerce and in consultation with the heads of other
relevant agencies and the Director of the Office of Management and Budget,
as appropriate, shall provide the President, through the Assistant to the
President for National Security Affairs:
(a) to the extent practicable, an assessment of the effectiveness of the
measures imposed under this order in addressing threats to the national
security of the United States described in this order; advancements by the
countries of concern in covered national security technologies and products
critical for such countries’ military, intelligence, surveillance, or cyber-en-
abled capabilities; aggregate sector trends evident in notifiable transactions
and related capital flows in covered national security technologies and prod-
ucts, drawing on analysis provided by the Secretary of Commerce, the Direc-
tor of National Intelligence, and the heads of other relevant agencies, as
appropriate; and other relevant information obtained through the implementa-
tion of this order; and
(b) recommendations, as appropriate, regarding:
(i) modifications to this order, including the addition or removal of identi-
fied sectors or countries of concern, and any other modifications to avoid
circumvention of this order and enhance its effectiveness; and
(ii) the establishment or expansion of other Federal programs relevant
to the covered national security technologies and products, including with
respect to whether any existing legal authorities should be used or new
action should be taken to address the threat to the national security
of the United States identified in this order.
Sec. 5. Reports to the Congress. The Secretary is authorized to submit
recurring and final reports to the Congress on the national emergency de-
clared in this order, consistent with section 40l(c) of the NEA (50 U.S.C.
1641(c)) and section 204(c) of IEEPA (50 U.S.C. 1703(c)).
Sec. 6. Official United States Government Business. Nothing in this order
or the regulations issued under this order shall prohibit transactions for
the conduct of the official business of the United States Government by
employees, grantees, or contractors thereof.
Sec. 7. Confidentiality. The regulations issued by the Secretary under this
order shall address the confidentiality of information or documentary material
submitted pursuant to this order, consistent with applicable law.
Sec. 8. Additional Notifications and Prohibitions. (a) Any conspiracy formed
to violate any regulation issued under this order is prohibited.
(b) Subject to the regulations issued under this order, any action that
evades or avoids, has the purpose of evading or avoiding, causes a violation
of, or attempts to violate any of the prohibitions set forth in this order
or any regulation issued under this order is prohibited.
(c) In the regulations issued under this order, the Secretary may prohibit
United States persons from knowingly directing transactions if such trans-
actions would be prohibited transactions pursuant to this order if engaged
in by a United States person.
(d) In the regulations issued under this order, the Secretary may require
United States persons to:
(i) provide notification to the Department of the Treasury of any transaction
by a foreign entity controlled by such United States person that would
be a notifiable transaction if engaged in by a United States person; and
(ii) take all reasonable steps to prohibit and prevent any transaction by
a foreign entity controlled by such United States person that would be
a prohibited transaction if engaged in by a United States person.
Sec. 9. Definitions. For purposes of this order:
(a) the term ‘‘country of concern’’ means a country or territory listed
in the Annex to this order that the President has identified to be engaging
in a comprehensive, long-term strategy that directs, facilitates, or otherwise
VerDate Sep<11>2014 20:49 Aug 10, 2023 Jkt 259001 PO 00000 Frm 00005 Fmt 4705 Sfmt 4790 E:\FR\FM\11AUE0.SGM 11AUE0
lotter on DSK11XQN23PROD with FR_PREZDOC0
54870
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Presidential Documents
supports advancements in sensitive technologies and products that are critical
to such country’s military, intelligence, surveillance, or cyber-enabled capa-
bilities to counter United States capabilities in a way that threatens the
national security of the United States;
(b) the term ‘‘covered foreign person’’ means a person of a country of
concern who or that is engaged in activities, as identified in the regulations
issued under this order, involving one or more covered national security
technologies and products;
(c) the term ‘‘covered national security technologies and products’’ means
sensitive technologies and products in the semiconductors and microelec-
tronics, quantum information technologies, and artificial intelligence sectors
that are critical for the military, intelligence, surveillance, or cyber-enabled
capabilities of a country of concern, as determined by the Secretary in
consultation with the Secretary of Commerce and, as appropriate, the heads
of other relevant agencies. Where applicable, ‘‘covered national security
technologies and products’’ may be limited by reference to certain end-
uses of those technologies or products;
(d) the term ‘‘entity’’ means a partnership, association, trust, joint venture,
corporation, group, subgroup, or other organization;
(e) the term ‘‘person of a country of concern’’ means:
(i) any individual that is not a United States person and is a citizen
or permanent resident of a country of concern;
(ii) any entity organized under the laws of a country of concern or with
a principal place of business in a country of concern;
(iii) the government of each country of concern, including any political
subdivision, political party, agency, or instrumentality thereof, or any
person owned, controlled, or directed by, or acting for or on behalf of
the government of such country of concern; or
(iv) any entity owned by a person identified in subsections (e)(i) through
(e)(iii) of this section;
(f) the term ‘‘person’’ means an individual or entity;
(g) the term ‘‘relevant agencies’’ includes the Departments of State, Defense,
Justice, Commerce, Energy, and Homeland Security, the Office of the United
States Trade Representative, the Office of Science and Technology Policy,
the Office of the Director of National Intelligence, the Office of the National
Cyber Director, and any other department, agency, or office the Secretary
determines appropriate; and
(h) the term ‘‘United States person’’ means any United States citizen,
lawful permanent resident, entity organized under the laws of the United
States or any jurisdiction within the United States, including any foreign
branches of any such entity, and any person in the United States.
Sec. 10. General Provisions. (a) The Secretary is authorized to take such
actions and to employ all powers granted to the President by IEEPA as
may be necessary to carry out the purposes of this order, including to:
(i) promulgate rules and regulations, including elaborating upon the defini-
tions contained in section 9 of this order for purposes of the regulations
issued under this order and further prescribing definitions of other terms
as necessary to implement this order;
(ii) investigate and make requests for information relative to notifiable
or prohibited transactions from parties to such transactions or other rel-
evant persons at any time, including through the use of civil administrative
subpoenas as appropriate;
(iii) nullify, void, or otherwise compel the divestment of any prohibited
transaction entered into after the effective date of the regulations issued
under this order; and
(iv) refer potential criminal violations of this order or the regulations
issued under this order to the Attorney General.
VerDate Sep<11>2014 20:49 Aug 10, 2023 Jkt 259001 PO 00000 Frm 00006 Fmt 4705 Sfmt 4790 E:\FR\FM\11AUE0.SGM 11AUE0
lotter on DSK11XQN23PROD with FR_PREZDOC0
54871
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Presidential Documents
(b) Notwithstanding any other provision of this order, the Secretary is
authorized to exempt from applicable prohibitions or notification require-
ments any transaction or transactions determined by the Secretary, in con-
sultation with the heads of relevant agencies, as appropriate, to be in the
national interest of the United States.
(c) To the extent consistent with applicable law, the Secretary may redele-
gate any functions authorized hereunder within the Department of the Treas-
ury. All agencies of the United States Government shall take all appropriate
measures within their authority to carry out the provisions of this order.
(d) If any provision of this order, or the application of any provision
of this order to any person or circumstance, is held to be invalid, the
remainder of this order and its application to any other person or cir-
cumstance shall not be affected thereby.
(e) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency,
or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(f) This order shall be implemented consistent with applicable law and
subject to the availability of appropriations.
(g) This order is not intended to, and does not, create any right or benefit,
substantive or procedural, enforceable at law or in equity by any party
against the United States, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.
THE WHITE HOUSE,
August 9, 2023.
Billing code 3395–F3–P
VerDate Sep<11>2014 20:49 Aug 10, 2023 Jkt 259001 PO 00000 Frm 00007 Fmt 4705 Sfmt 4790 E:\FR\FM\11AUE0.SGM 11AUE0
BIDEN.EPS</GPH>
lotter on DSK11XQN23PROD with FR_PREZDOC0
54872
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Presidential Documents
[FR Doc. 2023–17449
Filed 8–10–23; 11:15 a.m.]
Billing code 3395–F3–C
VerDate Sep<11>2014 20:49 Aug 10, 2023 Jkt 259001 PO 00000 Frm 00008 Fmt 4705 Sfmt 4790 E:\FR\FM\11AUE0.SGM 11AUE0
ED11AU23.025</GPH>
lotter on DSK11XQN23PROD with FR_PREZDOC0
