President Joe Biden on Wednesday signed an executive order barring U.S. investments in certain tech sectors of China, confirming rumors that have been swirling for months that Washington would ramp up efforts to squeeze China’s tech industry amid growing concerns over Beijing’s military ambitions.

The order authorizes the U.S. Secretary of the Treasury to restrict U.S. investment in three critical categories of Chinese companies: semiconductors and microelectronics, quantum computing, and artificial intelligence that is critical for the military, intelligence, surveillance, or cyber-enabled capabilities as determined by the Secretary in consultation with the Secretary of Commerce and other relevant agencies.

The measure is expected to take effect next year, according to The Washington Post.

“Advancements in sensitive technologies and products in these sectors will accelerate the development of advanced computational capabilities that will enable new applications that pose significant national security risks, such as the development of more sophisticated weapons systems, breaking of cryptographic codes, and other applications that could provide these countries with military advantages,” the document reads.

American venture investment firms first entered China in the 1990s, taking a central stage in financing the country’s tech companies and helping their businesses access the global market. That marriage is increasingly at risk as tensions between the U.S. and China rose in recent years, with governments on both sides seeking to disengage their tech development from each other.

The ban applies to companies in Hong Kong.

This is a developing story…