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ARTICLE · 03 DECEMBER 2024

Compliance Deadline Approaches For New Regs Targeting U.S. Investment In Chinese AI, Semiconductors, Quantum Tech

Fenwick
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On November 15, the U.S. Department of the Treasury published final regulations to implement its long-awaited "Outbound Investment" Security Program...

GlobalTechnology
Mark Ostrau
Mark Ostrau
Melissa Duffy
Melissa Duffy
Robert Slack
Robert Slack
Sofia Chalat
Sofia Chalat
Trevor Coval
Trevor Coval
Gregory Rohling
Gregory Rohling
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What You Need To Know

  • The Treasury Department is cracking down on direct and indirect U.S.-based investments in Chinese development of sensitive tech like semiconductors and microelectronics, quantum information technologies, and artificial intelligence starting January 2.
  • Some transactions—like full acquisitions, passive investments in public companies, and commercial business transactions to name a few—are not covered, however.
  • U.S. investors and strategic partners should undertake robust diligence on transactions to avoid violations that can result in criminal and civil penalties, as well as divestment of a prohibited transaction.

On November 15, the U.S. Department of the Treasury published final regulations to implement its long-awaited "Outbound Investment" Security Program, which the Biden Administration originally introduced in August 2023 under Executive Order 14105, to address national security issues around "countries of concern" that

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