US to curb AI investment in China

US rules that will ban certain US investments in artificial intelligence in China are under final review, according to a government posting, suggesting the restrictions are coming soon, reports Reuters.

The rules, which will also require U.S. investors to notify the Treasury Department about some investments in AI and other sensitive technologies, are derived from an executive order signed by President Joe Biden in August 2023 that focused on keeping American investors' know-how from aiding China's military.

The final rules-which will restrict outbound investment to China in AI, semiconductors and microelectronics and quantum computing-are now under review at the Office of Management and Budget, which in the past has meant they will likely be released within the next week or so.

"It looks to me like they're trying to publish this before the election," said former Treasury official Laura Black, a lawyer at Akin Gump in Washington. Black added that the Treasury office overseeing the regulations generally provides at least a 30-day window before such regulations go into effect.