The review of U.S. proposals to limit AI and semiconductor investments in China is ongoing.

• The review of measures to limit U.S. investments in China's sensitive technologies is nearing completion, according to a government update.
• The Treasury Department will mandate notification of outbound investments into China in sensitive technologies, including artificial intelligence.

The review of measures to limit U.S. investments in China's sensitive technologies is nearing completion, according to a government update.

The Treasury Department will mandate notification of outbound investments into China in sensitive technologies such as artificial intelligence, semiconductors, microelectronics, and quantum computing that can be used for military purposes.

Reuters reports that the final rules will be released in the "next week or so."

The Biden administration is taking steps to limit the transfer of U.S. funds, technology, and expertise to China, in an effort to prevent the country from modernizing its military and jeopardizing U.S. security.

The U.S. Treasury Department released proposals in June last year that suggest outright bans on specific investments into China's cutting-edge technologies.

The Treasury Department notification stated that the potential military, intelligence, surveillance, and cyber-enabled applications of these technologies and products pose risks to U.S. national security, particularly when developed by a country of concern such as the PRC.

Laura Black, a former Treasury official, stated that the department may finalize the rules prior to the presidential election on November 5, according to Reuters.

The Treasury invited citizens and companies to suggest ways to refine the regulation's scope and identify transactions that should be prohibited.

In October 2022, the U.S. implemented comprehensive export restrictions to limit China's access to advanced semiconductor technologies, particularly those utilized in AI applications, and imposed substantial tariffs on Chinese imports.