The Treasury Department has finalized rules to restrict investments in certain Chinese technology sectors.
Based on an executive order signed by President Joe Biden in August 2023, Treasury on Oct. 28 released final rules limiting U.S. investments in Chinese companies involved in the semiconductors and microelectronics, quantum information technologies and artificial intelligence sectors.
However, the rules allow Americans to still participate in certain investments involving such companies, like publicly traded securities, venture capital funds, private equity funds, fund of funds, or other pooled investment funds if the investments are below $2 million.
“This final rule takes targeted and concrete measures to ensure that U.S. investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security,” said Paul Rosen, Treasury’s assistant secretary for investment security, in a statement.
The rules go into effect Jan. 2.