The US issued draft rules on June 21 to ban or require notification of certain investments in AI and other tech sectors in China to protect national security. Stemming from US President Biden’s executive order, the rules aim to prevent US expertise from aiding China’s tech development. Focused on semiconductors, quantum computing, and AI, the rules require US entities to identify restricted transactions. Public comments are open until August 4, with regulations expected by year-end. Targeting China, Macau, and Hong Kong, the rules include exceptions and necessitate due diligence for US investments. Violators could face penalties.