The Treasury's Office of Investment Security (OIS) is set to publish its final rule restricting U.S. investments in certain technologies in China and other covered countries this week, reports Reuters. OIS's proposed rule is overly inclusive in its covered transactions and would threaten American competitiveness and national security.
OIS's advance notice of proposed rulemaking cites President Biden's August 2023 Executive Order and the International Emergency Economic Powers Act to justify its authority to curtail the investments of all citizens, permanent residents, and entities organized under U.S. jurisdiction. The Legal Information Institute explains that the act does grant the executive branch the power to "investigate, regulate, or prohibit any transactions in foreign exchange" after declaring a national emergency. But just because the government can do something doesn't mean it should.
