**Interviewer:** Recent reports suggest that the U.S. is on the verge of announcing new restrictions on investments in China’s AI sector. Can you clarify the status of these regulations?

**Expert:** Yes, according to an announcement from the U.S. government, the regulations prohibiting investments in Chinese artificial intelligence are currently undergoing final review. This indicates that the related restrictions will be released soon.

**Interviewer:** What specific requirements will these new rules impose on U.S. investors?

**Expert:** The regulations will require U.S. investors to notify the Treasury Department when making investments in certain AI and other sensitive technologies. These measures stem from an executive order signed by President Biden last August, aimed at preventing U.S. expertise from bolstering China’s military capabilities.

**Interviewer:** Which sectors are being targeted by these regulations?

**Expert:** The announcement specifically addresses U.S. investments in China’s AI, semiconductor, and quantum computing sectors. We expect that the final regulations will be publicly disclosed as early as next week based on historical precedents.

**Interviewer:** What insight can you provide regarding the timing of the announcement?

**Expert:** Laura Black, a former Treasury official and attorney at Akin Gump, believes the government is likely aiming to finalize these regulations before the upcoming presidential election on November 5. She also noted that the Treasury typically provides at least a 30-day preparation period before the rules take effect.

**Interviewer:** Can you share details about the public feedback process related to these proposed regulations?

**Expert:** Back in June, the Treasury released proposed regulations to allow public commentary. The draft indicated that both individuals and businesses in the U.S. would be responsible for assessing which transactions might be restricted.

**Interviewer:** What can we expect in terms of clarity around the scope of these regulations?

**Expert:** Black anticipates that the final rules will offer more detailed definitions regarding which aspects of AI are covered and will clarify thresholds for restricted partnerships.

**Interviewer:** Are there specific investment vehicles or structures that will be exempt from these proposed regulations?

**Expert:** The proposed regulations exclude publicly traded securities like index funds or mutual funds, as well as certain restricted partnership investments and specific joint debt financing arrangements.