The Biden administration said on Monday it is finalizing rules that will limit U.S. investments in artificial intelligence and other technology sectors in China that could threaten U.S. national security.
The rules, which were proposed in June by the U.S. Treasury, were directed by an executive order signed by President Joe Biden in August 2023 covering three key sectors: semiconductors and microelectronics, quantum information technologies and certain AI systems.
The new rules are effective Jan. 2 and will be overseen by Treasury’s newly created Office of Global Transactions.
Treasury said the “narrow set of technologies is core to the next generation of military, cybersecurity, surveillance, and intelligence applications.”
The rule covers technologies like “cutting-edge code-breaking computer systems or next-generation fighter jets,” added Paul Rosen, a senior Treasury official.
Story continues below advertisement
He added that “U.S. investments, including the intangible benefits like managerial assistance and access to investment and talent networks that often accompany such …