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Outbound rule has been submitted to OMB; heading to final stages?

Outbound rule has been submitted to OMB; heading to final stages?

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.

Vast majority of readers expect final rule on outbound to drop in Q4

Vast majority of readers expect final rule on outbound to drop in Q4

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.

Where is the outbound foreign investment rule? What’s the delay?

Where is the outbound foreign investment rule? What’s the delay?

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 hearing, experts back sanctions, entity-based approach to outbound

At hearing, experts back sanctions, entity-based approach to outbound

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.

Pension funds, colleges investing billions in China; outbound impact?

Pension funds, colleges investing billions in China; outbound impact?

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.

China Select Committee wants more broad approach to outbound regime

China Select Committee wants more broad approach to outbound regime

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.

Many VCs may be underestimating the full impact of outbound rule

Many VCs may be underestimating the full impact of outbound rule

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.

Experts say outbound rule could impact investments in the U.S.

Experts say outbound rule could impact investments in the U.S.

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.

Where is the outbound foreign investment rule? What’s the delay?

Clock ticking on effective date for some provisions of outbound rule

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.

Treasury already seeking comments on the outbound investment regime

Treasury already seeking comments on the outbound investment regime

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.

Outbound foreign investment E.O. finally unveiled; no real surprises

Outbound foreign investment E.O. finally unveiled; no real surprises

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.

Would Moderna’s $1B deal in China have triggered outbound scrutiny?

Would Moderna’s $1B deal in China have triggered outbound scrutiny?

We’ve got a live outbound case study, folks. Last week, Moderna inked a deal to invest $1 billion in mRNA research and development in China. So, would that deal have triggered outbound scrutiny — and increased deal friction — were an outbound review regime in place? Expert insights inside.

Report: 17% of investment deals in Chinese AI cos. include U.S. VC

Report: 17% of investment deals in Chinese AI cos. include U.S. VC

A new report out of Georgetown University may be the first to analyze data on outgoing U.S. investment into Chinese artificial intelligence companies. The report includes a wealth of data, and may offer much-needed context for a possible outbound regime. Details and the report are inside.