The U.S. Department of Treasury is implementing a new rule to limit outbound U.S. investments in Chinese companies developing advanced technologies that could impact U.S. national security. The Treasury Department rule is set to go into effect on Jan. 2, 2025, and is meant to create an enforcement framework for an executive order President Joe Biden enacted in August of last year.
Senior administration officials previewing the rule said they’re particularly focused on technological advancements being pursued by the Chinese Communist Party (CCP).
“The People’s Republic of China has a stated goal, as you know, to develop key sensitive technologies that will directly support the PRC’s military modernization and related activities, including weapons development, and has exploited U.S. investments to develop domestic military and intelligence capabilities,” one senior administration official said Monday.
A second senior administration official said the new rule is particularly focused on transactions involving semiconductors, quantum computing, and artificial intelligence technologies.
