US Treasury proposes rules tightening restrictions on US investments in areas including AI and supercomputing in China, Russia, and other "countries of concern" (Associated Press)

The U.S. Treasury Department has proposed a rule to tighten restrictions on American high-tech investments. According to the Associated Press, the measure aims to crack down on investments in areas such as supercomputing and AI within Russia, China, and other "countries of concern."

Speaking at a Brookings event titled “AI on the ballot: Data centres and the 2026 midterms,” Jim Himes, the top Democrat on the House Intelligence Committee, stated that he does not believe the United States will maintain its lead over Chinese frontier AI models indefinitely. Himes, a member of the bipartisan "Gang of Eight," described the restriction of advanced chips into China as Washington's primary lever for maintaining that lead for as long as possible.

The event also included an expert panel discussing how chip constraints might influence the AI race between the U.S. and China. Reports from Reuters Business via SCMP and the South China Morning Post note these comments come ahead of the midterm elections. A Reuters/Ipsos poll closed on Monday showed Democrats leading Republicans 47 per cent to 35 per cent on the "generic ballot."

Brief written by urgent.news from Techmeme, Reuters Business via SCMP, South China Morning Post — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.