The Treasury Department says the restrictions will ensure that U.S. investments do not advance technologies that threaten national security.

The United States has finalized rules that limit investments in critical technology sectors in China, such as artificial intelligence, for national security reasons, the Treasury Department announced.

The restrictions will prevent U.S. citizens and permanent residents, as well as U.S.-based companies, from engaging in transactions involving technologies such as AI, semiconductors and quantum computing, the Trésor in a press release.

U.S. investors will also be required to notify the Treasury about investments in certain less advanced technologies “that could contribute to the threat to the national security of the United States,” the Treasury said.

The restrictions, set to take effect Jan. 2, will ensure that “U.S. investments are not exploited to advance the development of key technologies by those who could use them to threaten our national security,” said Deputy Secretary Paul Rosen. of the Ministry of Foreign Affairs. Cash flow for investment security.

“U.S. investments, including intangible benefits like managerial assistance and access to investment and talent networks that often accompany such capital flows, should not be used to help countries of concern develop their capabilities military, intelligence and cyber,” Rosen said.

The restrictions follow President Joe Biden signing an executive order last year targeting investments in semiconductors and microelectronics, quantum computing and some artificial intelligence capabilities.

Biden warned then that U.S. investments could help adversaries develop sensitive technologies that are “critical to those countries’ military, intelligence, surveillance or cybersecurity capabilities.”

China’s Foreign Ministry criticized Biden’s executive order, calling it an attempt to “engage in anti-globalization and de-Inization.”

“Beijing is strongly dissatisfied and firmly opposes the United States’ insistence on introducing restrictions on investments in China, and has lodged solemn representations with the United States,” the ministry said in a statement.