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Blanchard Featured in Roll Call on Proposed Rules to Curb Chinese Tech Investment

July 3, 2024

Government Contracts & National Security partner Charles Blanchard was quoted in the Roll Call article, “Treasury seeks tighter rules on US investment in China tech,” which discusses the U.S. Department of the Treasury’s recent proposal to prohibit U.S. citizens and residents from investing in Chinese artificial intelligence, quantum computing, and semiconductor manufacturing.

Blanchard discussed how venture capital firms and tech companies are adjusting their strategies in response to the potential regulations, telling Roll Call that they are likely to seek “more precision” regarding what falls “under the category of advanced integrated circuit design versus normal integrated circuit design.” Additionally, they are watching to see if the rule is expanded to include the biotech sector — a move Blanchard believes would be unwise because if a Chinese biotech company “develops the next great cancer remedy, we want U.S. investors to get some of the upside of that, and we also want to encourage a successful commercialization of that technology.”

Blanchard added that companies are interested in understanding the Treasury Department’s likely actions regarding transactions that require notification, as “the notifiable transactions appear to be just a heads-up as opposed to any kind of clearance requirement” or obtaining any approval from the department.

Read the full article.