WASHINGTON (AP) — The U.S. Treasury Department, seeking to prevent China’s military from gain the edge in advanced technologiesissued a rule on Monday aimed at restricting and monitoring U.S. investments in China in the areas of artificial intelligence, computer chips and quantum computing.

The finalized rule results from a decree issued in August 2023 by President Joe Biden. The order sought to limit the access of “countries of concern” – particularly China, including Hong Kong and Macau – to US dollars to finance technologies that could be used, for example, to crack codes or develop new generation combat aircraft. It will come into force on January 2.

“US investments … should not be used to help countries of concern develop their military, intelligence and cybersecurity capabilities,” said Paul Rosen, assistant secretary of the Treasury for investment security. He noted that investments can mean more than money: They can provide “intangible benefits,” including management help and assistance in finding top talent and tapping other sources of funding.

Blocking China’s high-tech ambitions is one of the few issues that enjoys broad support in Washington, from both Republicans and Democrats.

Biden slapped in May a severe customs duty on electric vehicles from China. He also imposed export controls to prevent the Chinese from acquiring advanced computer chips and the equipment needed to produce them. Former President Donald Trump pledged to do so in spectacular fashion increase taxes on all imports from China if voters send him back to the White House.

A Chinese Foreign Ministry spokesperson said Tuesday that the government had lodged a protest with the United States over the latest action.

“China strongly deplores and firmly opposes the US restrictions on investment in China,” Lin Jian said at a daily press briefing in Beijing.

In Hong Kong, the city’s leader said the move undermined normal investment and trade and would cause damage to the global supply chain.

“By pursuing their political agenda, American politicians harm not only others, but also the interests of their own country, their people and their businesses. They will have to face the consequences of their actions,” said John Lee, noting that the United States enjoyed a $472 billion trade surplus with Hong Kong over the past ten years.

The Biden administration solicited feedback from businesses and U.S. allies before releasing the final version.

In addition to blocking investments, the rule requires Americans and businesses in the United States to notify the U.S. government of transactions involving “technologies and products that may contribute to a threat to the national security of the United States.”

Violators can be hit with fines of up to $368,136 or twice the value of the prohibited transaction, whichever is greater. Treasury is establishing an Office of Global Transactions to oversee the new rule.

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Associated Press writers Ken Moritsugu in Beijing and Kanis Leung in Hong Kong contributed to this report.