U.S. Finalizes AI Investment Restrictions in China Ahead of Election

The new rules aim to prevent American expertise from bolstering China's military capabilities.

Regulations are derived from an executive order by President Joe Biden and are under final review.
The rules target investments in AI, semiconductors, microelectronics, and quantum computing.
U.S. investors will need to notify the Treasury Department about certain transactions in these sectors.
China's tech giants have increased AI investments despite U.S. sanctions, focusing on processors and infrastructure.
The regulations are expected to be released soon, potentially before the U.S. presidential election on November 5.