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 Tennessee. Under the China Business Ventures Law, there is a prohibition of transfer of any regulated technology or know-how to Chinese nationals or entities without prior approval by the Tennessee Commissioner of Trade and Commerce or the U.S. Department of Commerce. Transfers of such items must be reviewed by the Commissioner before they can be approved. Any approval also depends on compliance with the Tennessee Export Control Law. This law requires that the transfer must be approved by the U.S. Department of Commerce before any technology or know-how can be transferred to Chinese nationals. This review process ensures that the technology or know-how is not being transferred to a person, entity, or government with an intent to use it for military or intelligence purposes. In addition, the Tennessee State Legislature has adopted the China Business Ventures Law which mandates that no person or entity may transfer Any Regulated Technology or Know-How to any Chinese national or entity without first obtaining prior approval from the Commissioner. It is important for any person or entity looking to transfer technology or know-how to a Chinese national or entity to first ensure that they have complied with all applicable laws before doing so.

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