U.S. rules that will ban certain U.S. investments in artificial intelligence in China are under final review, according to a government publication, suggesting restrictions are coming soon.
The rules, which will also require U.S. investors to notify the Treasury Department about some investments in artificial intelligence and other sensitive technologies, arise from an executive order signed by President Joe Biden in August 2023 that aims to prevent knowledge of American investors help China. military.
The final rules, which target outbound investments to China in artificial intelligence, semiconductors, microelectronics and quantum computing, are under review at the Office of Administration and Budget the post showed, which in the past has meant they will likely launch within the next week.
“It seems to me that they are trying to release this before the election,” said former Treasury official Laura Black, Akin Gump’s Washington lawyer, referring to the Nov. 5 U.S. presidential election. Black added that the Treasury office that oversees regulations generally provides a period of at least 30 days before such regulations take effect.
The Treasury Department released proposed rules, opens a new tab with a number of exceptions in June and gave the public a chance to comment. The draft rules placed the responsibility on American individuals and companies to determine which transactions will be restricted.
A Treasury Department spokesman declined to comment.
Black hopes the final rules will further clarify the scope of AI coverage and the threshold for limited partners.
The proposed rules prohibited AI transactions for certain uses and involving systems trained to use a specific amount of computing power. They required notification of transactions related to the development of artificial intelligence systems or semiconductors that were not otherwise prohibited.
Among the proposed exceptions were publicly traded securities such as index funds or mutual funds, certain investments in limited partnerships, and certain syndicated debt financings.
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