TAIPEI (Taiwan News) — The US Department of the Treasury finalized rules to restrict US investments to China in high-tech sectors on Monday (Oct. 28).

The rules, signed by President Joe Biden as an executive order in August 2023, cover AI, semiconductors, and quantum information technology, per a press release. They will come into effect on Jan. 2, 2025.

Additionally, the rules define “US persons” as not just entities or citizens, but also permanent residents, per Nikkei Asia. However, they do not prohibit all investment into China.

“The Biden-Harris Administration is committed to protecting America’s national security and keeping critical advanced technologies out of the hands of those who may use them to threaten our national security,” Assistant Secretary for Investment Security Paul Rosen said.

“US investments, including the intangible benefits like managerial assistance and access to investment and talent networks that often accompany such capital flows, must not be used to help countries of concern develop their military, intelligence, and cyber capabilities,” he added.

The restrictions are part of a bigger push to prevent Chinese companies from developing sophisticated technology, per Reuters.