The U.S. Treasury Department issued a new rule this week seeking to limit U.S. investments in China for military technology.
On Monday, the Treasury Department announced a new rule aimed at restricting and monitoring American investments in China’s artificial intelligence, semiconductor, and quantum computing sectors. The move is part of an effort to prevent the Chinese military from gaining an advantage in advanced technologies.
The Rule:
The new rule stems from an executive order issued by President Joe Biden in August 2023, aimed at curbing the flow of U.S. capital to “countries of concern,” including China, Hong Kong, and Macau. The order targets technologies with military applications, such as code-breaking and next-generation fighter jets. The restrictions are set to take effect on January 2.
Along with restricting investments, the rule mandates that U.S. individuals and companies report transactions involving “technologies and products that may contribute to a threat to the national security of the …