Foreign Investment Watch quotes Partner Melissa Mannino in an Aug. 20 article titled “Experts say outbound rule could impact investments in the U.S.”
Among other things, the proposed rule would limit transactions involving technology or products that raise “acute” national security concerns. According to the article, it is largely interpreted as being aimed squarely at China, Hong Kong and Macau, but its potential impact could be greater than intended.
As Mannino told the publication, the proposed rule could have concerning impacts here in the U.S., as the investment restrictions will seemingly even apply to investments into companies owned 50% or more by a citizen or permanent resident of China, Hong Kong or Macau, irrespective of the company’s location. Thus, for example, “if a U.S. person invests in a Chinese greenfield investment in the United States relating to AI, then that investment could be subject to the investment restrictions.”
Read the article (subscription required).