US Government Moves to Restrict Investments in China’s Sensitive Technologies
The US government is finalizing measures aimed at curbing American investments in China’s sensitive technologies, including artificial intelligence, semiconductors, and quantum computing. The Treasury Department will require notification of outbound investments that could be used for military purposes.
National Security Concerns Drive New Regulations
The proposed rules are part of the Biden administration’s efforts to restrict the flow of US capital, technology, and expertise into China, which could support its military modernization and undermine US national security. The Treasury Department has identified potential military, intelligence, surveillance, and cyber-enabled applications of these technologies as posing risks to US national security.
Outright Bans on Certain Investments Possible
The proposals include potential outright bans on certain investments into China in cutting-edge technologies. The Treasury Department has invited citizens and companies to submit suggestions for further defining the regulation’s scope and opinions on transactions that should be restricted.
Export Controls and Tariffs Already in Place
The US has already implemented sweeping export controls aimed at restricting China’s access to advanced semiconductor technologies, particularly those used in AI applications. Additionally, the US has imposed a series of hefty tariffs on Chinese imports.
Final Rules Expected Soon
The final rules are expected to be released within the next week or so. Former Treasury official Laura Black believes the department may be trying to make the rules official before the presidential election on November 5.
Impact on US-China Relations
The new regulations are likely to further strain US-China relations, which have been tense in recent years due to trade and security concerns. The US government’s move to restrict investments in China’s sensitive technologies is seen as a necessary step to protect national security, but it may also have implications for American businesses operating in China.
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