The US plans to require American companies to disclose investments they make in China in high-tech sectors such as artificial intelligence, and to prohibit certain investments outright.
The much-anticipated move gives the government new power to screen foreign dealings by private companies.
The US said the measure would be narrowly targeted, but it is poised to further chill economic relations between the two superpowers.
China said it was “very disappointed”.
The US “has continuously escalated suppression and restrictions on China,” said Liu Pengyu, a spokesperson for the Chinese embassy in Washington.
Dispatches From The Front 