Draft outbound investment rule refines scope of covered transactions

A proposed rule outlining an outbound investment review mechanism published by the Treasury Department on Friday expands on which transactions in three sensitive technology sectors must be notified and, potentially, restricted if U.S. investments are headed toward countries of concern. President Biden last August signed an executive order instructing Treasury to formulate notification requirements and prohibitions for U.S. investments to countries of concern, namely China, in the semiconductor, AI and quantum information technology sectors. As part of that process, Treasury...