Treasury Department Issues Proposed Rules Restricting U.S. Investments in China
Highlights
Newly proposed rules prohibit or require notification of U.S. investments, directly and indirectly, in China involving semiconductors and microelectronics, quantum information technologies, and/or artificial intelligence systems
Investors are expected to conduct a “reasonable and diligent inquiry” to determine if their investments are covered by the restrictions
The Treasury Department is seeking comments from interested parties by Aug. 4, 2024
The U.S. Department of the Treasury published its proposed rules on June 21 imposing restrictions on certain U.S. outbound investments involving China (including Hong Kong and Macau). These proposed rules come almost a year after President Joe Biden’s executive order instructing the Treasury Department to establish such a program targeting U.S. investments in China in certain categories of national security technologies and products.
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