US Rules Limiting AI Investing in China Imminent

KEY TAKEAWAYS

• U.S. rules that will limit some American investing into sensitive technologies including artificial intelligence (AI) in China are imminent, with a federal government update in the last review stage.
• The final rules will be released in the "next week or so," according to Reuters.
• The rules follow an executive order signed by President Joe Biden in August 2023 limiting U.S. investing in China that could strengthen the Asian nation's military while weakening American national security. 

U.S. rules that will limit some American investing into sensitive technologies including artificial intelligence (AI) in China are imminent, with a U.S. government update in the last review stage.

The final rules will be released in the "next week or so" following an Office of Management and Budget review, Reuters said.

Executive Order by President Biden Last Year Limited US Investing in China

The rules follow an executive order signed by President Joe Biden in August 2023 limiting U.S. investing in China that could strengthen the Asian nation's military while weakening American national security. 

According to that order, the U.S. Department of the Treasury was considering barring investing into China's quantum information technologies and some advanced technologies like "semiconductors and microelectronics," and requiring notification for investment into AI.

The proposals were put forward for public feedback last year.  

The U.S. imposed export controls on advanced semiconductor chips aimed at curbing China's access last year. Such curbs have already made it harder for American firms like Nvidia (NVDA) and Intel (INTC) to sell AI chips to China.

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