US Unveils Outbound Investment Prohibitions

The Biden administration Aug. 9 unveiled its plans for a new outbound investment screening regime, which will restrict U.S. investments in three advanced technology sectors in China and set notification requirements for other sensitive outbound investments. The new screening regime, outlined in an executive order to be signed by President Joe Biden, will prohibit certain investments in entities operating in China’s quantum information technology, artificial intelligence and semiconductor/microelectronics industries, namely those that transfer technological “know-how” to Chinese companies, a senior administration official said during a call with reporters. The prohibitions will take effect after the Treasury Department solicits public comments, writes and finalizes regulations.