On October 28, 2024, the US Treasury Department (“Treasury”) issued a long-anticipated final rule (“Final Rule”)—effective January 2, 2025—implementing a targeted outbound investment compliance regime called for by Executive Order (“EO”) 14105 issued by President Biden on August 9, 2023. The Final Rule applies to investments by, or in some circumstances directed by, US Persons in Chinese businesses involving specified categories of technologies — namely: semiconductors and microelectronics, quantum information technologies and artificial intelligence (AI).…
On October 9, 2024, the US Commerce Department’s Bureau of Industry and Security (“BIS”) issued guidance to financial institutions on best practices for compliance with the US Export Administrations Regulations (“EAR”). The guidance aims to help financial institutions minimize the inadvertent EAR violations, especially under General Prohibition 10 (“GP 10”), which prohibits financing or servicing items subject to the EAR with knowledge that a violation of the EAR has occurred, is about to occur, or…
On July 29, 2024, the US Department of State’s Directorate of Defense Trade Controls (“DDTC”) issued a proposed rule (“Proposed Rule”) that would revise the definition of “defense service” and the scope of related controls in the International Traffic in Arms Regulations (“ITAR”). The Proposed Rule was issued following a review by DDTC that identified certain military, cyber, and intelligence services furnished to foreign persons that are not currently controlled or are controlled but for…
On June 21, 2024, the US Treasury Department (“Treasury”) issued a much-awaited Notice of Proposed Rulemaking (“NPRM”)—pursuant to Executive Order (“EO”) 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern”—regarding the upcoming outbound investment review regime, which prohibits or, alternatively, requires notification of certain investments into entities linked to China and engaged in subsets of three specified technologies (semiconductors and microelectronics, quantum information technologies,…