Milbank LLP partner John Beahn was quoted in an fDi Intelligence article titled “US Outbound Screening Rules Narrower than Feared” discussing the United States’ long-awaited outbound investment screening regime.
On August 9, President Biden issued an executive order that limits US investment in China’s semiconductor, quantum computing and artificial intelligence (AI) sectors that pose national security risks.
Mr. Beahn commented, “The executive order is narrower than many had expected.” While some had anticipated sector-wide bans or prohibitions on broad sets of products, Mr. Beahn notes that the White House has taken a “more discrete approach.” It is not clear when the framework will take effect, but Mr. Beahn noted the fact that draft regulations were issued alongside the executive order suggests the government “wants to move relatively quickly.” Based on previous US rulemaking, he expects the outbound rules to be in place by early 2024.
Based in Milbank’s Washington DC office, Mr. Beahn has a particular focus on matters related to the Committee on Foreign Investment in the United States (“CFIUS”) and foreign direct investment, with extensive experience representing clients in national security reviews before CFIUS, the “Team Telecom” executive branch agencies and the Defense Counterintelligence and Security Agency.
Read the full fDi Intelligence article here and read Milbank’s client alert, “Biden Administration Releases Executive Order Proposing Outbound Investment Regime” here.
