US Treasury drops Venezuela from countries facing outbound US investment restrictions
QQQ•The Treasury proposed rules for screening US outbound investment in China, Russia and other countries, removing Venezuela from the list after saying Nicolas Maduro’s government no longer exists. The proposal adds biotechnology as a covered sector and would require notifications for some investments while banning certain artificial intelligence investments.
1. Venezuela removed from list
The US Treasury Department proposed rules for screening outbound investment in China, Russia and other countries, but no longer includes Venezuela. Treasury said Maduro’s government “no longer exists” following his capture by US forces in January, and that the current government led by Delcy Rodriguez did not meet the definition of a country-of-concern regime. The proposed rule could still apply to certain investments in Venezuelan entities.
2. Rules target specific investments
The proposal would require notifications about prospective investments in six sectors and five designated countries, while banning investments in artificial intelligence technologies in those countries. It would not ban all investments and includes exceptions for certain publicly traded companies and transactions valued below $50,000. Investors could also request exemptions for transactions deemed to be in the US national interest.
3. Biotechnology added
Treasury added biotechnology to the five sectors listed in the legislation: advanced semiconductors and microelectronics, artificial intelligence systems, quantum information technologies, high-performance computing and supercomputing, and hypersonic systems. The rules do not cover potential licensing agreements between US pharmaceutical companies and China. Treasury will accept comments on the proposal through December 7.
