Mainland authorities on Wednesday said they firmly opposed new rules announced by the US Treasury that will prohibit US-headquartered firms, citizens, and permanent residents from engaging in transactions involving cutting-edge technology with China.

The restrictions will take effect on January 2, targeting investments in the fields of semiconductors, artificial intelligence and quantum computing.

"China firmly opposes the United States issuing final rules on investment restrictions on China and has lodged stern representations with the United States," a spokesperson for the Ministry of Commerce said in a statement on Wednesday.

"The United States has generalised the concept of national security," the statement said, calling the restrictions a "typical non-market practice".

The rules will "damage the interests" of firms in both China and the United States, the statement warned.

China "reserves the right to take measures", it added.

US Treasury assistant secretary for investment security Paul Rosen had said in a statement that the areas targeted by the latest US curbs "are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications".

Investors will also be required under the rules to inform authorities about investments in some less advanced technologies that could threaten US national security, the department added. (AFP)