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

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.

Sidley Austin LLP provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship.

Attorney Advertising - For purposes of compliance with New York State Bar rules, our headquarters are Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, 212.839.5300; One South Dearborn, Chicago, IL 60603, 312.853.7000; and 1501 K Street, N.W., Washington, D.C. 20005, 202.736.8000.

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

联系方式

办公室