Despite the fact that the outbound foreign investment regime is already effective, a group of Congressional leaders is expected to reintroduce an alternative approach that represents a more “comprehensive framework.” The news came at a recent fireside chat. Details inside.
The Outbound Investment Security Program is now effective, but don’t get too attached to it. According to a Presidential trade memorandum released in January, the Trump administration is now reviewing the outbound regime and other policies to determine whether they should be “modified or rescinded.”
Last week, the European Commission urged its member states to scrutinize outbound investments in non-EU countries, and to do so for the same technologies impacted by the U.S. outbound regime: semiconductors, quantum and AI. Details and related EU documents are inside.
Right before the holidays, the Treasury Department published answers to thirty questions about the outbound investment security program. The document provides helpful examples of covered transactions, and was supplemented by a number of notification templates. Details, documents inside.
Right before Thanksgiving, we learned what was on the agenda for Treasury’s Outbound conference on December 9. According to Treasury officials, the half-day event will be heavy on discussions about operationalization and implementation, with lots of Q&A. Sounds good, but registration closes soon…
The Treasury Department has unveiled its final outbound rule, which regulates U.S. investment in China. According to experts, the rule could actually ensare U.S. companies, particularly if they have significant Chinese ownership or financial connections to China. Details, insights, more inside.
An expert on national security has proposed an alternative to an outbound foreign investment review regime: Offer tax abatements to U.S. capital in China that repatriates to the U.S. and deploys elsewhere. The tax incentives would be tied to foreign policy and national security goals.
As we predicted last week, Treasury has unveiled its proposed rule on outbound investment. Described as a “narrow and targeted national security program,” the rule addresses outbound investments “that contribute capital as well as intangible benefits” to entities that pose a risk to national security.
According to publicly available data confirmed by industry experts, the Treasury Department’s outbound investment proposal has been filed with the Office and Management and Budget. That means the proposed rule is likely in its final stages, and could be published soon. More inside.
Where is the final rule on outbound investment? We haven’t gotten a good answer, so we polled readers for the ETA. When asked when they thought the final rule would drop, the vast majority (88.3%) predicted that the rule would drop in Q4; most picked the month after the election. Details inside.
As most Foreign Investment Watch readers know, President Biden issued an Executive Order to establish a targeted outbound investment review program back in August of 2023. Treasury issued its ANPRM on the same day, and the input process ended nearly seven months ago. So, um, where is it?
At a House Financial Services Committee hearing on outbound, experts stated that Biden’s E.O. would create a “cumbersome and unnecessary bureaucratic process,” and that outbound investment authorities “should not be located within CFIUS.” Details, insights, and copies of the testimony are inside.
Most U.S. public pension funds and universities have committed massive amounts of capital to China, including investments in sensitive technologies. That’s according to a new report, which claims that the proposed outbound review regime could be undermined by this activity. Details, report inside.
Leaders of The Select Committee on the Chinese Communist Party have offered Treasury Secretary Janet Yellen implementation recommendations on the outbound Executive Order. Experts say it represents a broader or “maximalist” approach to regulating outbound investment. Details inside.
The vast majority of venture capital firms say they will not be impacted much by the Treasury’s proposed rule on outbound investment. That’s according to our latest survey; only 16 percent of respondents said they would be impacted “significantly” by the proposal. Details inside.
Much has been made of the fact that the Treasury Department’s proposed rule focuses exclusively on China. But that’s not the full story. In fact, the proposal could impact investments in any country, even the U.S., under certain circumstances. Details, examples of possible scenarios, and insights inside.
Okay, let’s not beat a dead horse. The E.O. has been released, and Treasury is seeking comment on their implementing rule, which likely won’t be finalized until next year. We know. But experts clarify that some of the provisions may be effective immediately. Details and insights are inside.
Just a few hours after President Biden issued the Executive Order on outbound investment in China, the Treasury Department unveiled its “Advanced Notice of Proposed Rulemaking,” and began soliciting feedback. Details, key questions, and instructions for commenting are inside.
Last year, our readers predicted that the Biden administration would issue an Executive Order on outbound investment before summer 2023. Wow, were they close. The E.O. was released this afternoon, and, as anticipated, will ban investments in certain Chinese technologies. Detail, E.O. inside.
In our latest episode of “Ten With Tom,” former Treasury Department Assistant Secretary for Investment Security Thomas Feddo — now founder of The Rubicon Advisors — discusses why an Executive Order is the wrong approach, and explores some alternatives to an E.O.