US to curb AI investment in China soon

By Karen Freifeld

U.S. rules that will ban certain U.S. investments in artificial intelligence in China are under final review, according to a government posting, suggesting the restrictions are coming soon.

The rules, which will also require U.S. investors to notify the Treasury Department about some investments in AI and other sensitive technologies, stem from an executive order signed by President Joe Biden in August 2023 that aims to keep American investors’ know-how from aiding China’s military.

The final rules, which target outbound investment to China in AI, semiconductors and microelectronics and quantum computing, are under review at the Office of Management and Budget, the posting showed, which in the past has meant they will likely be released within the next week or so.

“It looks to me like they’re trying to publish this before the election,” said former Treasury official Laura Black, a lawyer at Akin Gump in Washington, referring