The United States proposes to impose targeted restrictions on artificial intelligence and technology investments in China

The United States on Friday issued targeted draft rules to block or report US investments in artificial intelligence and other key technologies in China that could threaten US national security.

The US Treasury Department issued the proposed rules and a set of exceptions after an initial comment period following an executive order signed by President Joe Biden last August. The rules put it in the hands of US individuals and companies to determine which transactions are restricted or prohibited.

Public comments will be accepted until August 4. This means that the United States is on track to implement the regulations as planned by the end of the year.

Biden's executive order ordering regulation of certain US investments in semiconductors, microelectronics, quantum computing and artificial intelligence reflects growing frustration with China's aggressive efforts to control global markets, especially in new technologies.

“This proposed rule strengthens our national security by preventing the many benefits that certain U.S. investments provide, beyond pure capital, from supporting the development of sensitive technologies in countries that could use them to threaten our national security,” said Paul Rosen, Assistant Secretary of the Treasury. For Investment Security (Reporting by Andrea Shalal and David Lauder in Washington and Karen Freefield in New York; Editing by Chris Sanders and Chizuo Nomiyama)