INTRODUCTION Contributed by: G. J. Ligelis Jr, Cravath, Swaine & Moore LLP
ment. On 28 October 2024, the US Treasury Depart - ment issued a final rule to implement a new outbound investment security programme, which took effect on 2 January 2025. This rule prevents US persons from engaging in certain outbound transactions with persons from China involving certain technologies and products relating to artificial intelligence, semi - conductors and quantum technologies and imposes new notification and disclosure requirements for other investments.
Much of this focus has been driven by fear of invest - ment to and from China. Accordingly, the impact on inbound Chinese investment around the world has been sudden and severe, with Chinese investment in the USA dropping to levels not seen since the 2008–09 financial crisis. Importantly, the net cast by these more expansive and proactive FDI review regimes reaches beyond just China, and governments view them as a tool not only to protect national security but also to further national interests and the well-being of their citizens. Going forward, businesses around the world will need to proactively evaluate the applicability of these regimes and legislation and effectively navigate their review in order to successfully achieve their FDI objectives.
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