Global Arbitration, Trade and Advocacy Update

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

December 12, 2024

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.

Read the full Update below.

Click Here to Download the Update

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