On October 28, 2024, the US Treasury announced a Final Rule mandating notification or prohibition of certain outbound investments by US persons in countries of concern, specifically China, involving semiconductors, quantum technologies, and AI systems. Effective January 2, 2025, this rule requires US individuals and entities to avoid transactions that could be deemed prohibited if conducted by them. It outlines covered transactions, exceptions, and definitions of “covered foreign persons.” Violations may incur significant penalties, emphasizing the need for due diligence. The rule aims to regulate US investments in sensitive sectors to enhance national security.