The United States has finalised its guidelines to limit American investment in China’s advanced technology sectors, the Department of the Treasury said today.
These guidelines prevent American citizens, permanent residents, and businesses from investing in Chinese artificial intelligence, semiconductors, and quantum technology companies.
“Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications,” said Assistant Secretary for Investment Security Paul Rosen.
“U.S. investments, including the intangible benefits like managerial assistance and access to investment and talent networks that often accompany such capital flows, must not be used to help countries of concern develop their military, intelligence, and cyber capabilities.”
The limits will go into effect on January 2, and apply to Hong Kong and Macau as well as China.
These rules will allow American investment in publicly traded securities, although Americans are already forbidden from buying or selling securities of certain Chinese companies under a separate executive order.
Americans will also be required to notify the Treasury Department of any transactions with Chinese companies involving these technologies.
The guidelines clarify an executive order that was signed in August 2023.
“China strongly deplores and firmly opposes the US’s single-minded rollout of restrictions on investments in China,” a spokesperson from China’s Foreign Affairs Ministry said at the time. “The move’s real aim is to deprive China of its right to develop and selfishly pursue US supremacy at the expense of others.”