Key Notes:
- The rule would implement Executive Order 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern.”
- Treasury has reiterated that any final rule will not prohibit all investment in a country of concern, and that the intent of this process is not to create a case-by-case review of transactions.
- Treasury’s Office of Investment Security is seeking public comment by August 4, 2024, on the proposed rule. Treasury will consider this further input before issuing the final implementing regulations.
On June 21, 2024, the Department of the Treasury’s (Treasury) Office of Investment Security issued a proposed rule to implement President Joseph Biden’s Executive Order (EO) 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern.” The proposed rule builds on the Advance Notice of Proposed Rulemaking, also issued in August 2023, that initially set forth proposed regulations prohibiting U.S. investments in certain industry sectors of countries of concern and imposing certain notification requirements. The president’s EO currently identifies only China (and the special administrative regions of Hong Kong and Macau) as a “country of concern.”