The final rule on the new U.S. outbound investment security program (Outbound Investment Rules), implemented by the U.S. Department of the Treasury (Treasury) and effective on January 2, 2025, represents a significant regulatory framework aimed at prohibiting, or requiring notification to Treasury of, investments directed by, or undertaken by subsidiaries of U.S. persons in Chinese-affiliated companies that design, develop, or manufacture certain sensitive technologies deemed important to U.S. national security. Understanding the implications of the Outbound Investment Rules will be essential for both borrowers and lenders operating within these jurisdictions.

 

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