Tom Westle’s Post

The U.S. Department of the Treasury has set the stage for regulation of certain U.S. outbound investment in China and China-linked companies and has presented draft regulations on this topic for the first time. In their new alert, Anthony Rapa, Brendan Saslow, Patrick Collins, and Rachel D. Evans look at the key elements of the Notice of Proposed Rulemaking, the covered technologies, and how it would be enforced. Read here: bit.ly/3La2uc7 #outboundinvestment #China #internationaltrade

Check out our alert on the Treasury Department's proposed rule regarding U.S. outbound investment in China and China-linked companies. (And of course, we could not help but name this "Outbound and Down".)

Another thing you need to worry about if you are invested in Chinese companies. This bipartisan effort in the US Congress is motivated by strategic, commercial and national interest concerns. Whether or not it will pass is an open question. But this seems to be the general direction of travel. TOBAM's LBRTY strategies avoid investing in companies that are highly exposed to authoritarian regimes, whether or not they are seen as a strategic threat by the US. The investment thesis, backed up by data, is that in the long run, democracy is better for business. An interesting byproduct is that LBRTY investors are less likely to be negatively impacted by US or EU sanctions on Chinese companies.

Major trade law changes are heading our way in 2024! Brace for new outbound investment regulations. Jonathan Gafni, a renowned foreign investment lawyer, expects the Treasury Department to release its draft regulations in the first half of the year. This means we could see them taking effect as early as the end of this year. The rules will feature a 30-day comment period, a review, and the issuance of the final version after another 30 days. But what's really on everyone's minds? The specifics - which technologies and investors will be under scrutiny? What about indirect U.S. investments and non-Chinese companies with interests in China? The devil, as always, is in the details. Experts hint at possible new Committee on Foreign Investment in the U.S. (CFIUS) rules this year, with bouts of efficiencies. Could we see the committee expanding its definition of critical technologies beyond its current scope? It's not just the U.S. where changes stir on the horizon. Lawyers are grappling with foreign investment regimes popping up globally, from Australia, Canada, EU, to Asia. The wheels are in motion, and it's critical to stay ahead of the curve. Are you ready to navigate the landscape of outbound investment regulations and CFIUS rules? Stay tuned. Shape your investment strategies with informed decisions. Keep an eye on this space for more updates and insights. #compliance #tradelaw

Good article on Beijing’s efforts to revive the #corporate #bond #market. Deng Xiaoping’s immortal saying “to get rich is glorious” is still valid under Chairman Xi. […] Most important of all, Xi’s reform team is eying a great leap forward for China’s corporate bond market. This has long been a stumbling block for smaller, less established corporate credits. In particular, China plans to expand the range of bond financing options — and the scale — to private enterprises. Under a series of “innovation bills” under the National Association of Financial Market Institutional Investors and China Securities Regulatory Commission, new structures will be welcomed for stock-bond hybrid products, green bonds, carbon neutrality bonds, transition bonds, infrastructure bonds and other financing tools. Support programs will seek to incentivize private enterprises to issue asset-backed securities to restructure and revitalize existing assets. Registration mechanisms will be streamlined. And Beijing will prod state-owned entities like China Bond Insurance Co and China Securities Finance Corporation, and even non-government institutions, to adhere to global standards and raise their credit market games. […] #china #corporatebonds #bondmarket #finance #reform #assets #privateenterprises #creditrisk

On Wed #USA lawmakers called for passage of bipartisan legislation that would restrict investment in #HighTech industry. Wang Wen, executive dean of RDCY, noted that the process of China's technological development in the past has been, in many aspects, a journey of facing blockades and suppression from powerful nations and overcoming such challenges. Therefore, I can confidently say that the more they suppress us, the stronger we become. The greater the pressure and blockade, the more it encourages our researchers to resist such suppression and bring forth more technological support. Read more: https://lnkd.in/gXHqV_36

Members of our International Trade team unpack #proposedrulemaking for #outboundinvestment recently issued by the U.S. Department of the Treasury, detailing how the new program will affect U.S. persons considering certain investments involving #china and industry sectors, such as #semiconductors, #artificialintelligence and #quantumcomputing.

Members of our International Trade team unpack #proposedrulemaking for #outboundinvestment recently issued by the U.S. Department of the Treasury, detailing how the new program will affect U.S. persons considering certain investments involving #china and industry sectors, such as #semiconductors, #artificialintelligence and #quantumcomputing.

Members of our International Trade team unpack #proposedrulemaking for #outboundinvestment recently issued by the U.S. Department of the Treasury, detailing how the new program will affect U.S. persons considering certain investments involving #china and industry sectors, such as #semiconductors, #artificialintelligence and #quantumcomputing.

Members of our International Trade team unpack #proposedrulemaking for #outboundinvestment recently issued by the U.S. Department of the Treasury, detailing how the new program will affect U.S. persons considering certain investments involving #china and industry sectors, such as #semiconductors, #artificialintelligence and #quantumcomputing.