On October 28, 2024, pursuant to Executive Order 14105 signed by President Biden, the U.S. Department of Treasury (“Treasury”) finalized its Outbound Investment Regulations (the “Regulations”) to restrict direct and indirect investments by U.S. persons and companies in the semiconductor, quantum information technologies, and artificial intelligence sectors involving China, Hong Kong, and Macau. Specifically, the Regulations prohibit or require notification to Treasury when a U.S. person has knowledge of certain covered transactions involving covered foreign persons. We discussed in more detail the Regulations and the key takeaways for businesses in this advisory.
Treasury also created Office of Global Transactions, which sits within Treasury’s Office of Investment Security, to administer and enforce the Regulations. With an effective date of January 2, 2025, the implementation and enforcement of the Regulations will be carried out by the new Trump Administration.
