US Treasury Looks to Block US Private Investment in Chinese AI Tech

The U.S. Treasury Department has issued a Notice of Proposed Rulemaking (NPRM) aiming to restrict U.S. private-sector investments in China concerning critical technologies like semiconductors and microelectronics; quantum information technologies; and artificial intelligence.

This Notice of Proposed Rulemaking (NPRM) outlines guidelines to enforce President Biden's executive order from August 2023 titled "Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern."

"President Biden and Secretary Yellen are committed to taking clear and targeted measures to prevent the advancement of key technologies like artificial intelligence by countries of concern from threatening U.S. national security. This proposed rule advances our national security by preventing the many benefits certain U.S. investments provide—beyond just capital—from supporting the development of sensitive technologies in countries that may use them to threaten our national security,” Assistant Secretary of the Treasury for Investment Security Paul Rosen said in a media update.

Under the Outbound Order, the Secretary of the Treasury is tasked with implementing regulations that prohibit U.S. individuals from engaging in transactions involving certain technologies and products identified as posing a significant national security threat to the United States. 

Additionally, individuals are required to inform the Treasury of transactions related to designated technologies and products that might pose risks to national security. These measures aim to safeguard national interests by controlling the dissemination and use of sensitive technologies critical to U.S. security concerns.

Last month,  the U.S. Departments of Labor (DOL) and Treasury unveiled a collaborative initiative aimed at bolstering fraud prevention measures in unemployment insurance to states via a data-matching system.