On October 28, 2024, the Department of the Treasury’s (Treasury) Office of Investment Security issued a final rule1
(“Final Rule” or “Outbound Investment Regulations”) containing the regulations that will implement, effective on January 2,
2025, an outbound investment regulatory regime that captures certain types of US person-involved investments in, or
with, Chinese interests if the investment involves any of three key technology areas: quantum information technologies,
semiconductors and microelectronics, and certain artificial intelligence (AI) technologies. US and non-US companies
involved in or planning to participate in one or more of the key technology areas must be intimately familiar with the
scope and application of these regulations to avoid liability. The regulations create new due diligence obligations on such
businesses, and non-compliance is subject to the same severe penalties as Office of Foreign Asset Control (OFAC)
sanctions violations. This publication provides a summary of the Outbound Investment Regulations established by the Final
Rule, and offers considerations for enterprises potentially affected by the new regulatory program.
1 Provisions Pertaining to U.S. Investments in Certain National Security Technologies and Products in Countries of Concern (to be codified at 31 C.F.R. Part 850).
Read the full insight to learn more about this rule.
