Summary
The U.S. Treasury has issued a Final Rule to enforce President Biden’s Executive Order targeting investments in Chinese companies involved in semiconductors, quantum computing, and AI, effective January 2, 2025. U.S. persons will face prohibitions and notification requirements for certain transactions in these sectors with China. The rule applies to private equity, venture capital funds, and includes obligations for U.S. partners in foreign funds. Companies must conduct due diligence to comply, as violations can result in significant penalties. The Treasury plans to provide further guidance before implementation.