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Some U.S. investments in artificial intelligence, semiconductors and quantum computing will be blocked on national security grounds under a new rule finalized Monday by the Biden administration.

The final rule, implemented by a decree President Biden, signed in August 2023, establishes a new program that prohibits American investors from making certain investments in these sectors in China that could help Beijing’s military development. It also requires them to disclose their other investments in these technologies in China to the US government, according to a Treasury Department announcement.

The administration has sought input from external stakeholders and U.S. allies over the past year to finalize the order, which includes more details on the technologies to which it applies and the information that Americans must disclose to Treasury under the program.

A senior Biden administration official described the final rule as “focused on national security and aimed at addressing the specific risks posed by certain U.S. investments abroad” in China. “This maintains our long-standing commitment to open investment,” the official added.

The rule would apply to a variety of transactions, including greenfield investments, business expansions and joint ventures, but includes exceptions, such as for publicly traded securities and certain limited partner investments. Under the rule, a U.S. company would not be able to buy land in China to develop a quantum research facility, the official said, giving an example.

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The policy will take effect on January 2, 2025, days before Biden leaves office. This is part of the Congressional Review Act that allows Congress to overturn federal agency regulations, although the policy has bipartisan support and is likely to survive under a Republican-controlled Congress or administration.

Members of Congress attempted to pass legislation permanently restricting overseas investment in China’s high-tech sectors, but ongoing disagreements prevented such a law from being passed. House Republicans are currently in talks over a compromise that would satisfy Republicans like House Financial Services Committee Chairman Patrick McHenry, who opposed proposals that would establish a sector-wide approach and favored a more narrow, sanctions-based.

McHenry told reporters Friday that lawmakers closer to a compromise that a few months ago and have not ruled out passing a bill during the lame duck session.

“We don’t need to be like China” to surpass Beijing, he said. “We are a country where the rule of law reigns. We need a resilient and transparent regime for investors.”