The US Treasury is working to implement new rules which would restrict the flow of US investments and knowledge into Chinese companies that are developing advanced semiconductors, artificial intelligence and quantum computing.

In comments made ahead of a Senate Banking Committee hearing, Paul Rosen, assistant secretary of the Treasury for investment security confirmed the internal steps being taken, specifically tying investment from the US “with know-how and expertise to certain specific sectors and subsectors such as advanced semiconductors, artificial intelligence and quantum computing."

The news comes several months after reports emerged that the Biden administration was planning to ban investment in some Chinese tech firms in an effort to stop US money flowing into sensitive Chinese investors.

Those in Washington particularly sceptical of China have warned that funding the country’s tech sector could also help advance its military.

Outside of tech, US lawmakers in 2022 reviewed 5,064 export and re-export licence applications with about 26 per cent denied or returned without action.

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