The United States has escalated its efforts to regulate outbound investments in China, focusing on advanced technologies deemed critical to national security. This initiative reflects a broader strategy to curtail the flow of US capital and expertise into sectors that could bolster China’s military capabilities or surveillance infrastructure. In 2024, the Biden Administration formalized a regulatory framework targeting investments in artificial intelligence (AI), semiconductors, and quantum computing. These measures, effective January 2025, introduce prohibitions on certain transactions—such as those linked to quantum computing—and require mandatory notifications for others involving high-performance AI systems and advanced microelectronics.