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Treasury Publishes Final Outbound Investment Rules

The Treasury Department issued a pre-publication version of the final regulations for its outbound investment program, which will set new prohibitions and notification requirements to limit certain U.S. business activities in the semiconductor, artificial intelligence and quantum sectors of mainland…

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China, Hong Kong and Macau beginning Jan. 2. The final rule, released Oct. 28, adopts many of the regulations proposed by the agency earlier this year along with a host of notable tweaks, clarifications and refinements, including a more detailed description for the rules’ AI investment threshold, insight into the agency’s due diligence expectations for U.S. companies and updates to the scope of exempt transactions.