Supply Chains and U.S. Global Tech Leadership May Inform Determinations on U.S.’ Unilateral Outbound Investment Rules – or Maybe Not

Dec 16

December 16. 2024

On Friday, the U.S. Treasury Department released additional guidance regarding its plans for the January 2 implementation of its unilateral outbound investment rules for semiconductors, microelectronics, quantum information technologies and AI. There’s a lot to unpack in this new guidance, but of particular interest is Treasury’s statement that determinations will be “informed” by considerations including:

The transaction’s effect on critical U.S. supply chain or critical infrastructure needs:
Domestic production related to U.S. defense requirements; and
U.S. global tech leadership in areas affecting U.S. national security.

While the Treasury guidelines also make clear that “exemptions...will be warranted only in exceptional circumstances,” this nod to the concerns of the U.S. private sector represents a potential opening.

The United States faces many national security challenges in the current unstable geopolitical landscape. Taking into consideration the competitiveness of U.S. business will be crucial as the Executive Branch forges ahead with what so far is a unilateral regime vis-à-vis the PRC and on outbound investment.

New Treasury National Interest Exemption Guidelines – 12.13.24

https://home.treasury.gov/system/files/206/Consideration_Guideli nes_Related_Request_Under-850502a.pdf

New Treasury Outbound Investment FAQs – 12.13.24

https://home.treasury.gov/system/files/206/Outbound-Investment-Security-Program-FAQs-12-13-2024.pdf

U.S. Treasury Final Rule – 11.15.24

https://www.govinfo.gov/content/pkg/FR-2024-11-15/pdf/2024-25422.pdf