The proposed regulations would implement President Biden’s Executive Order that restricts certain outbound investments from the US.

On June 21, 2024, the US Department of the Treasury (Treasury) issued a Notice of Proposed Rulemaking (NPRM) that would implement Executive Order 14105 on “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern” (August 9, 2023) (the Order). The Order, which we discussed in our Client Alert in August 2023, directed Treasury to issue regulations aimed at addressing the national security threat posed by certain US investments that may accelerate the development of sensitive technologies and products in “countries of concern.” The NPRM addresses public comments received to the Advance Notice of Proposed Rulemaking (ANPRM), which Treasury published concurrently with the Order, and offers an opportunity for the public to provide comments to inform the development of the final regulations. Comments are due by August 4, 2024, and — according to US Commerce Department Secretary Gina Raimondo — final regulations are expected to be in place by the end of 2024.