U.S., AI, Advanced Semiconductors Control Investment in China...Enforcement in January next year

The U.S. government has decided to control U.S. companies' investment in China in cutting-edge technologies such as artificial intelligence, semiconductors, and quantum computing.

The U.S. Treasury Department announced the final rules for regulating investment in China after collecting opinions and consulting between ministries on an executive order signed by President Joe Biden in August last year and said it will take effect on January 2 next year.

The U.S. has put China and Hong Kong and Macau in its "country of concern" to effectively control U.S. capital's investment in the state-of-the-art technology sector in China.

Companies that want to make investments in China in AI and high-tech semiconductors must report their investment plans in advance, and the U.S. Treasury Department will have regulatory authority.

The White House explained that the final rules, as set out in the executive order of the presidential decree, prohibit Americans from engaging in certain transactions related to certain technologies and products that pose a serious national security threat to the United States.

It added that the final rule requires Americans to notify the Treasury Department of certain transactions involving certain technologies and products that could pose a threat to U.S. national security.