The Treasury Department has proposed a rule to restrict and monitor U.S. investments in China for advanced technologies like artificial intelligence, computer chips, and quantum computing. This stems from President Biden's executive order to limit access to American dollars by "countries of concern" like China, Hong Kong, and Macau, to prevent the enhancement of their military and cyber capabilities. The administration is focused on curbing China's technological development to prevent military dominance or control over key industries like electric vehicles. The proposed rule would require detailed information from U.S. investors engaging in transactions in these areas and prohibit funding for AI systems in China with military applications. While seeking to protect national security, the administration also aims to maintain commercial exchange with China. The public is invited to comment on the proposal until August 4, 2024, with the expectation of a final rule thereafter. Despite tensions between the two nations, officials have stated they are not looking to completely sever ties with China.