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ARTICLE · 06 NOVEMBER 2024

Treasury Issues Final China Outbound Investment Rule

Cassidy Levy Kent LLP
Cassidy Levy Kent LLP
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Cassidy Levy Kent LLP

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The U.S. Department of the Treasury (Treasury) on October 28, 2024, issued a Final Rule to implement Executive Order (E.O.) 14105 of August 9, 2023...

GlobalStrategy

The U.S. Department of the Treasury (Treasury) on October 28, 2024, issued a Final Rule to implement Executive Order (E.O.) 14105 of August 9, 2023, "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern." In that Executive Order, President Biden directed Treasury to regulate outbound investment by U.S. persons or entities relating to the development of sensitive technologies and products in countries of concern that pose a threat to the national security of the United States.

The Final Rule, which is set to take effect January 2, 2025, largely mirrors a July 2024 Proposed Rule and applies to all covered transactions involving covered foreign persons in any countries of concern, currently China (including Hong Kong and Macau). In particular, the Final Rule prohibits U.S. persons from engaging in certain covered transactions involving specific technologies and covered foreign persons in countries of

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