Uncle Sam to Chinese Buyer: Sell Back Those U.S. Chips or Else!
Published Date: 1/8/2026
Presidential Document
Summary
HieFo Corporation, owned by a Chinese citizen, bought important parts of EMCORE Corporation that make digital chips. The U.S. government says this deal could hurt national security and is ordering HieFo to sell those parts back within 180 days. This means HieFo must give up all related assets, contracts, and property to protect America’s tech future.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Forced divestment within 180 days
The President ordered that HieFo Corporation’s purchase of EMCORE’s digital chip businesses (the Transaction that closed April 30, 2024) is prohibited and that HieFo must divest all interests in the Emcore Assets no later than 180 calendar days after January 2, 2026, unless CFIUS extends that deadline. The order explicitly bars HieFo (and its affiliates) from owning those assets and notes U.S. nationals on HieFo’s board as of November 26, 2025 are not treated as affiliates.
IP must be destroyed or transferred and certified
As part of the Divestment, HieFo must destroy or transfer all intellectual property associated with the Emcore Assets and certify in writing to CFIUS that the destruction or transfer is complete. CFIUS is authorized to require auditing of HieFo and its affiliates, at no cost to CFIUS, and will conclude verification procedures within 90 calendar days after receiving HieFo’s certification of Divestment.
Immediate access limits and weekly reporting
From the date of the order until divestment is verified, HieFo must not grant access to the Emcore Assets or any non-public technical information to persons who are not HieFo personnel, and within 7 calendar days HieFo must put in place measures or controls required by CFIUS to prevent prohibited access. HieFo must also certify weekly to CFIUS that it is in compliance and report efforts and a timeline for completing the Divestment.
CFIUS inspection, buyer notice, and 30-day review
CFIUS is authorized to inspect premises, copy books and records, audit IT systems, and interview HieFo officers, employees, or agents to verify compliance. HieFo may not complete any sale or transfer of Emcore Assets until it notifies CFIUS of the intended buyer and 30 calendar days have passed without CFIUS objection; CFIUS may impose conditions or other measures and the Attorney General may take enforcement steps under section 721(d)(3).
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-18835, Excluding Certain Canadian Products From Importation Into the United States in Response to Continued Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages
The U.S. is blocking some Canadian products from coming in because Canada is unfairly stopping American alcoholic drinks from being sold there. This move hits Canadian imports to balance the playing field and protect U.S. businesses. The changes start right away and could affect trade money flows between the two countries.
2026-18837, Excluding Certain Canadian Products From Importation Into the United States in Response to Continued Discrimination Against the Commerce of the United States With Respect to Motor Vehicles
The U.S. is putting extra taxes on some Canadian motor vehicles and parts because Canada is treating American car products unfairly. These new rules started on August 22, 2026, after Canada stopped trying to fix the problem. This affects Canadian exporters and could make their products more expensive in the U.S., protecting American businesses.
2026-18839, Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Motor Vehicles
The U.S. is keeping extra taxes on some Canadian motor vehicles and parts because Canada isn’t playing fair with U.S. car exports. These extra duties started August 22, 2026, after Canada broke a promise to fix the problem. This affects Canadian exporters and aims to protect American businesses from unfair trade practices.
2026-18836, Excluding Certain Canadian Products From Importation Into the United States in Response to Continued Discrimination Against the Commerce of the United States With Respect to Dairy
The U.S. is blocking some Canadian dairy products from entering the country because Canada is treating American cheese unfairly with extra fees. After Canada promised to fix this but backed out, the U.S. put extra taxes on Canadian goods starting August 22, 2026. This move aims to protect American dairy businesses and keep trade fair.
2026-18838, Modifying the Scope of Products of Canada Subject to the Additional Duties Imposed To Offset Canadian Discrimination Against the Commerce of the United States With Respect to Alcoholic Beverages
The U.S. is keeping extra taxes on some Canadian products because Canada is unfairly blocking American alcoholic drinks while letting others in. After a brief pause hoping Canada would fix this, they didn’t, so the taxes started on August 22, 2026. This affects Canadian exporters and aims to protect American businesses from unfair treatment.
2026-18738, Accelerating Access to Veterans' Benefits and Employment Opportunities
This new order helps veterans get their benefits and jobs faster by fixing slow and messy record-sharing between the military and Veterans Affairs. Within 180 days, updated tech and smart digital tools will make it easier for veterans to apply for healthcare, education, and job training. This means less waiting and smoother transitions for millions of veterans, with no extra cost delays.
Previous / Next Documents
Previous: 2026-00245, To Implement the United States-Israel Agreement on Trade in Agricultural Products and for Other Purposes
The U.S. is updating its trade deal with Israel to keep agricultural products flowing smoothly and fairly between the two countries. This means some duties on certain farm goods will change starting soon, helping farmers and businesses on both sides. The changes kick in right away and aim to keep trade balanced without extra costs for consumers.
Next: 2026-00327, Amendments to Adjusting Imports of Timber, Lumber, and Their Derivative Products Into the United States
The U.S. is updating rules on importing timber, lumber, and related wood products to protect national security. New tariffs and negotiations aim to reduce risky imports starting early 2026, affecting companies bringing in softwood lumber. These changes could mean higher costs for some imports but help keep America’s wood supply safe and steady.