On October 28, 2024, the U.S. Department of the Treasury (“Treasury”) issued a Final Rule (the “Final Rule”) implementing Executive Order 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern.” The Final Rule addresses and is informed by 49 public comment letters received from interested parties in response to Treasury’s Notice of Proposed Rulemaking (the “NPRM”) issued on June 21, 2024. Consistent with the NPRM, the Final Rule requires U.S. persons to notify Treasury of certain outbound investment transactions and prohibits certain outbound investment transactions, in each case that involve persons of “countries of concern” that engage in “covered activities” involving certain sensitive technologies and products in the semiconductors and microelectronics, quantum information technologies and artificial intelligence sectors. These “covered transactions” are the types of U.S. person investments that, according to Treasury, are most likely to convey “both capital and intangible benefits that can be exploited to accelerate the development of sensitive technologies or products critical for military, intelligence, surveillance, or cyber-enabled capabilities of countries of concern in ways that threaten the national security of the United States.” The People’s Republic of China, including the Special Administrative Regions of Hong Kong and Macau, is the sole identified “country of concern,” though the President may identify additional countries in the future. The Final Rule will take effect on January 2, 2025.