This law is designed to prevent American money from flowing into certain foreign companies and technologies that could strengthen countries the U.S. considers adversaries or threats to national security. The main targets are China, Russia, Iran, North Korea, Cuba, and Venezuela.

Here's what it does in practical terms: American investors, companies, and investment funds are now restricted from putting money into foreign companies involved in advanced technologies like semiconductors, artificial intelligence, quantum computing, and hypersonic weapons systems if those companies are based in or controlled by the countries listed above. If you're an American investor or company, you generally can't buy significant stakes in these foreign tech companies, provide them loans with special perks, or join joint ventures with them to develop these technologies. The law also requires people to notify the Treasury Department within 30 days if they do make such investments, so the government can track what's happening.

There are some exceptions—like if you're buying publicly traded stocks on regular exchanges, or if the government decides an investment serves America's national interest. The Treasury Department gets $150 million to enforce this and can impose civil penalties up to $300,000 per violation, or even force companies to sell off investments they've already made. The law lasts for seven years unless Congress extends it. Essentially, it's an attempt to cut off the flow of American capital that could help these countries develop military or surveillance technologies that might threaten U.S. security.