Are there any restrictions on the transfer of technology and know-how to Chinese nationals?

Yes, there are restrictions on the transfer of technology and know-how to Chinese nationals in California. The China Business Ventures Law, which was passed in California in 2016, specifically states that any transfer of technology must be consistent with U.S. federal law and comply with the requirements of the Export Administration Regulations. It also prohibits any transfer of foreign technology or know-how that is subject to export control laws or regulations to any degree of more than 50%. Additionally, the law implies that no technology or know-how can be transferred to any person who is a citizen of, is a permanent resident of, has been determined by the U.S. government to be an agent of, or is owned or controlled by the People’s Republic of China. Lastly, the law states that any person or company that does transfer technology or know-how must first create and implement a security policy designed to protect and secure said technology or know-how. To summarize, the China Business Ventures Law in California does restrict the transfer of technology and know-how to Chinese nationals in certain ways. Companies and individuals must comply with U.S. federal law and the Export Administration Regulations, and should not transfer any technology or know-how subject to export control laws or regulations to any degree of more than 50%. Additionally, companies and individuals must create and implement a security policy to protect and secure their technology and know-how before transferring it to Chinese nationals.

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