Clifford Chance

Scrutinizing Outbound Investment: A Closer Look at Treasury's Proposed Rule on Outbound U.S. Investments

July 2, 2024

On June 21, 2024, the U.S. Department of the Treasury issued a Notice of Proposed Rulemaking (the "Proposed Rule" or "NPRM") to implement the August 9, 2023 Executive Order and address "the national emergency declared by the President with respect to the national security threat posed by countries of concern developing technologies that are critical to the next generation of military, intelligence, surveillance, or cyber-enabled capabilities." As the Treasury Press Release and Fact Sheet describe, the Proposed Rule lays out draft regulations to establish a national security program. This program would either prohibit or require notification of certain types of outbound investments by "U.S. persons" into certain industries in so-called "countries of concern," currently defined as the People's Republic of China, Hong Kong, and Macau or otherwise involving "Covered Foreign Persons."

Comments on the Proposed Rule are due by August 4, 2024.

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