Treasury Dept. ‘outbound investment’ rule aims to block China’s access to AI, advanced tech

The Treasury Department has finalized rules to prohibit U.S. citizens from making artificial intelligence and other high-tech investments in “countries of concern” -- specifically the People’s Republic of China -- under a 2023 executive order on “outbound investment” security.

The Treasury regulation, announced Oct. 28 and taking effect on Jan. 2, is the latest turn in U.S. efforts to counter China’s progress on AI, semiconductors and quantum information technologies, and is intended to complement existing high-tech export controls.

It...