Definition
A US government program that reviews and restricts American investment into AI and other sensitive technologies in countries of concern, notably China. Covered investors must notify or seek approval before certain transactions, and violations carry civil monetary penalties — with the first enforcement fine now issued. It sits alongside export controls as the other major lever on capital flowing into restricted AI sectors.
Why it matters
Any deal touching AI companies in restricted jurisdictions is now a compliance event with real money at stake, so boards and deal teams need it on their due-diligence checklist.