U.S. Nears AI Investment Ban in China

The U.S. is finalising rules that will prohibit certain investments in artificial intelligence (AI) in China, with a government notice indicating that the restrictions will be implemented soon.

These regulations, which require U.S. investors to inform the Treasury Department of some investments in AI and other sensitive technologies, follow an executive order from President Joe Biden in August 2023.

The aim is to prevent American expertise from aiding China’s military advancements. The rules, focusing on outbound investments in AI, semiconductors, microelectronics, and quantum computing, are under review by the Office of Management and Budget, suggesting their release is imminent.

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Former Treasury official Laura Black suggested that the regulations may be published before the November 2024 U.S. presidential election, with a typical 30-day window before they come into effect.

The Treasury Department, which declined to comment, had earlier proposed rules in June with exceptions, placing responsibility on U.S. individuals and companies to identify restricted transactions.