The restrictions also apply to Russia and Venezuela, but China is quite clearly the main target as it was the main topic of discussion at meetings that thrashed out the details.
US Commerce Secretary Wilbur Ross said on Monday: "It is important to consider the ramifications of doing business with countries that have histories of diverting goods purchased from US companies for military applications.
"Certain entities in China, Russia, and Venezuela have sought to circumvent America’s export controls, and undermine American interests in general, and so we will remain vigilant to ensure US technology does not get into the wrong hands."
A second change would block firms from buying scientific gear like digital oscilloscopes, airplane engines and certain types of computers without a licence, no matter the reason for the purchase.
The final change would make it compulsory for foreign companies who ship some American goods to China to obtain approval from the US Government, apart from their own authorities.
Whether coincidentally or otherwise, on the same day China announced new cyber security rules that will govern the purchase of technology.
The Wall Street Journal reported that the new rules could tilt the balance in favour of local products.
Companies considered to be running critical information infrastructure will have to undergo a review by the Cyberspace Administration of China when they order equipment or services that could affect national security.
The WSJ quoted one analyst from the research firm Gavekal Dragonomics as saying the language used in the rules could pose problems, as it was extremely vague.
Lance Noble, who is based in Beijing, said: “The inclusion of flexible language on which risks are to be guarded against, as well as the pre-existing aim to reduce reliance on foreign technology, will lead [multinational corporations] to worry that this will further complicate their position in the Chinese market.”