Almost a year after President Joseph Biden issued an executive order requiring new regulations to restrict and track US investment in China, the US Department of the Treasury released proposed rules. The draft regulations are generally consistent with the advance notice of proposed rulemaking that was issued concurrent with the executive order in August 2023, and confirm that, in addition to prohibiting certain investments, the new regulatory regime will impose significant compliance requirements on both US investors and on the funds and companies that receive US investment. In advance of the final rules being promulgated, potentially affected parties should prepare for the effect on their operations and consider what additional measures will be needed to adapt and comply with the new regulatory regime.