Treasury proposes excluding Venezuela from restricted list

Treasury Unveils Sweeping Outbound Investment Curbs Targeting China and Russia

“The regulations target complex supply chains and dual-use technologies rather than capital alone,” explained Chris Pilkerton, the Treasury subsecretary overseeing investment security. The U.S.

Venezuela Excluded From Restricted List After Leadership Shift

The Treasury stated that the current administration led by Delcy Rodríguez, who served as Maduro’s vice president, does not meet the criteria for designation because Maduro’s government no longer exists. However, the agency noted that certain investments in Venezuelan entities could still face review under general provisions. Initially focused solely on China, the outbound investment restriction program was expanded by the COINS law to include Cuba, Iran, North Korea, Russia, and Venezuela under Maduro’s regime.

Bans and Mandatory Notifications Across Six Sensitive Sectors

The proposed framework requires American companies and individuals to notify the Treasury regarding specific planned investments across six sensitive sectors while imposing an outright ban on artificial intelligence investments. The restricted sectors include advanced semiconductors, quantum information technologies, high-performance computing, hypersonic systems, and biotechnology. Transactions valued under $50,000 and publicly traded company shares are exempt from the requirements. The rules do not ban all investments in the targeted countries, focusing instead on specific transactions involving entities that use dual-use technologies capable of benefiting military programs, surveillance states, and countries involved in human rights violations, while the COINS law also granted the Treasury authority to add other sectors when necessary.

Public Feedback Window Open Ahead of Final Rules

The Treasury Department established a public comment period running through December 7 for the proposed rules. The agency will review submitted feedback before finalizing the screening mechanisms, as President Donald Trump received Chinese President Xi Jinping on a state visit to Washington last month and has adopted a less restrictive approach toward Chinese technologies during his second term.

What Technology Sectors Require Mandatory Treasury Notification?

What specific technology sectors require mandatory Treasury notification?

Investors must notify the Treasury regarding planned transactions in six distinct fields: advanced semiconductors and microelectronics, quantum information technologies, high-performance computing and supercomputing, hypersonic systems, and biotechnology. Investments involving artificial intelligence are strictly prohibited rather than subject to notification.

Are small investments or public stock purchases exempt from the rules?

Yes. The proposed regulations include exemptions for transactions valued at less than $50,000 and for investments in companies that trade publicly on stock exchanges. Investors can also petition for exemptions on operations deemed to serve U.S. national interests.

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