US Treasury Implements New Regulations on Investments in Certain Technologies

 

The US Treasury has issued regulations, effective 2 January 2025, targeting US investments in specific technologies within Mainland China, Hong Kong, and Macau. These regulations are focused on technologies identified as critical to national security, such as semiconductors, quantum information technologies, and artificial intelligence.

The newly released rules require US persons to avoid certain types of transactions and to report others to the Treasury. The regulations define the scope of prohibited transactions and the necessary notifications for transactions that involve the specified technologies.

For Hong Kong manufacturers operating in these sectors, it is essential to understand the new regulatory landscape as it could influence partnerships and investment activities involving US entities. The regulations detail the obligations of US persons, the categories of transactions that are covered, and the penalties for non-compliance.