US Treasury Issues New Rules On Foreign Investments

The Treasury Department issued new rules on foreign investments into American companies that will give the government more power to block foreign transactions on national security grounds.

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The rules, which represent the latest escalation in an intensifying economic conflict between the United States and China, will implement a program for tougher reviews of foreign acquisitions that Congress approved this summer.

The regulations will require foreign investors to alert a Treasury-led interagency committee to all deals that would give the foreign investors access to critical technology covering 27 industries, including semiconductors, telecommunications and defense.

Treasury Secretary Steven Mnuchin said the new interim rules will “address specific risks to U.S. critical technology” while also giving officials critical information they can use in developing the final rules.