Dec 122024

U.S. Treasury Issues Final Rule Restricting Outbound Investments in Chinese-Affiliated Entities

James Mendenhall, Carys Golesworthy and Lloyd Lyall
, ,

On October 28, 2024, the U.S. Department of the Treasury (Treasury) released the Final Rule for its new regulations prohibiting or requiring notification of U.S. outbound investments in certain Chinese-affiliated companies in the semiconductor and microelectronics, quantum information technology, and artificial intelligence (AI) sectors. The Final Rule will take effect on January 2, 2025.

The Final Rule comes five months after Treasury published its Notice of Proposed Rulemaking (NPRM) for these regulations and just over a year after the Biden administration issued an executive order (EO) directing Treasury to create the program. The Sidley Update in connection with the NPRM is here. Treasury’s fact sheet and press release on the Final Rule are available here and here respectively.

Please click here to view the full Sidley Update.

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.

James Mendenhall

Washington, D.C.

jmendenhall@sidley.com

Carys Golesworthy

Washington, D.C.

cgolesworthy@sidley.com

Lloyd Lyall

Washington, D.C.

lloyd.lyall@sidley.com

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