On October 28, 2024, the Treasury Department published – ahead of publication in the Federal Register and at the public inspection office of the Federal Register – the Final Rule related to restrictions on outbound investments of U.S. persons in China, specifically related to three covered technologies:  1. Semiconductors and microelectronics; 2. Quantum information technologies, and 3. Artificial Intelligence.  This narrow set of technologies is core to the next generation of military, cybersecurity, surveillance, and intelligence applications. 

https://home.treasury.gov/system/files/206/TreasuryDepartmentOutboundInvestmentFinalRuleWEBSITEVERSION_0.pdf

While Treasury could have issued a broader restriction on outbound investment to China (and other countries), Treasury has elected to tailor the investment restrictions to these key technological fields to be complimentary of Department of Commerce rules restricting exports of items subject to U.S. jurisdiction to China in these areas.  

In addition to the broad restriction on investments by U.S. persons into China in these technological areas, the Final Rule also requires U.S. persons to notify the Department of the Treasury of certain other transactions involving a defined set of technologies and products that may contribute to a threat to the national security of the United States. 

It is expected that the Final Rule will be published in the Federal Register public reading room in the next few days, with official publication the week of November 4, 2024.