Treasury Proposes Restrictions to AI Investment in China

June 27, 2024

The Outbound Investment Program aims to restrict outbound investment from the United States in AI and other key technologies in China, specifically the People’s Republic of China, Hong Kong, and Macau. The goal is to protect national security interests by regulating investments in these sectors. The Treasury department has proposed a rule to restrict investment into “the next generation of military, intelligence, surveillance, or cyber-enabled capabilities.” Such a rule would complement efforts to restrict semiconductors and other AI-related technology to China.