The US government is in the final stages of reviewing measures designed to limit investments into China’s sensitive technologies, according to a recent update. The new rules, expected to be released within the next week, will require the Treasury Department to be notified of outbound investments into China in areas such as artificial intelligence, semiconductors, microelectronics, and quantum computing — technologies that could potentially aid China’s military development.
These proposals are part of the Biden administration’s broader strategy to restrict the flow of US capital, technology, and expertise into China, particularly in ways that might support its military modernization and pose national security risks. In June of last year, the Treasury Department first introduced these measures, which include possible outright bans on investments in these advanced technologies.
The Treasury Department emphasized that the military, intelligence, and surveillance applications of these technologies, especially when developed by countries like China, represent significant threats to U.S. national security.
Reuters reported that former Treasury official Laura Black suggested the department may be aiming to finalize these rules ahead of the upcoming US presidential election on November 5. In the interim, the Treasury had sought input from citizens and companies to further define the scope of the regulations and identify which transactions should be restricted.
Since October 2022, the US has imposed sweeping export controls to block China’s access to advanced semiconductor technologies, especially those used in AI applications, and has also implemented significant tariffs on Chinese imports.