U.S. Introduces New Regulations to Restrict Investment in China's High-Tech Sectors, Targeting Semiconductors, Quantum Computing, and AI

On June 21, the U.S. Treasury Department issued a draft "Notice of Proposed Rulemaking" (NPRM) aimed at restricting U.S. entities from investing in China in three high-tech sectors: semiconductors and microelectronics, quantum information technology, and artificial intelligence (AI).

According to the Treasury Department, the restricted investments include equity investments, convertible debt financing, greenfield investments, and contributions as limited partners. Violators could face criminal and civil penalties.