Late last month, the US Treasury Department finalized new restrictions limiting what kinds of Chinese tech startups US venture capital firms can invest in for national security reasons. When they go into effect in January, the long-awaited measures will stop American VCs and other investors from pouring money into cutting-edge Chinese AI models. After president-elect Trump takes office a few weeks later, his administration may expand the rules and make them even tougher. While the US still leads the world in advanced AI development, the American government has grown increasingly concerned about China catching up soon. The new outbound investment restrictions are designed to work alongside other measures, such as export controls on advanced computer chips and the Committee on Foreign Investment in the United States (CFIUS), to collectively hamper--or at least slow down--the progress of Chinese AI companies.