Strict regulation disadvantage US tech exports

16 Jul 2007

The US State Department's rejection in April of the $295-million acquisition of AsiaSat by principal shareholders GE Capital Equity Investments and Citic Group of China has brought to the fore issues of too-strict regulation that may put US companies at a competitive disadvantage in exporting to foreign purchasers.

Although the US does not generally restrict export of technology, limits have been imposed on those exports considered to have security implications. Certain telecom and aerospace equipment and components, as well as information security software, including encryption products, are considered to implicate national security and are, therefore, subject to export restriction.

Where technology export restrictions apply, acquisition of a US company by non-US persons may also breach export controls.

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