The Treasury Department Finalizes U.S. Outbound Investment Rules

Colleagues Nancy A. Fischer, Matthew R. Rabinowitz, Zachary C. Rozen, Samantha Franks, Erin Kwiatkowski and Marcus Burden recently broke down the key points of a U.S. Department of the Treasury Final Rule that establishes significant new parameters for U.S. outbound investments in sensitive technologies within countries of concern.

TAKEAWAYS

The Final Rule formalizes a new governmental system to monitor through a notification process and, when necessary, restrict investments in China that may be viewed as a national security risk.
The regulations have broad applicability to investments, greenfield projects, joint ventures and other arrangements in the semiconductor, artificial intelligence and quantum computing sectors.
U.S. individuals in executive or director roles are prohibited from knowingly directing certain activities, unless appropriately recused from the transaction.