A central processing unit (CPU) semiconductor chip is displayed amongst flags of China and U.S., on this illustration image taken Feb. 17, 2023. Reuters-Yonhap
The Biden administration stated on Monday it’s finalizing guidelines that may restrict U.S. investments in synthetic intelligence and different know-how sectors in China that would threaten U.S. nationwide safety.
The principles, which had been proposed in June by the U.S. Treasury, had been directed by an government order signed by President Joe Biden in August 2023 protecting three key sectors: semiconductors and microelectronics, quantum info applied sciences and sure AI programs.
The brand new guidelines are efficient Jan. 2 and shall be overseen by Treasury’s newly created Workplace of World Transactions. Treasury stated the “slender set of applied sciences is core to the following technology of army, cybersecurity, surveillance, and intelligence purposes.” The rule covers applied sciences like “cutting-edge code-breaking pc programs or next-generation fighter jets,” added Paul Rosen, a senior Treasury official.
He added that “U.S. investments, together with the intangible advantages like managerial help and entry to funding and expertise networks that usually accompany such capital flows, should not be used to assist nations of concern develop their army, intelligence, and cyber capabilities.”
The rule is a part of a broader push to forestall U.S. know-how from serving to the Chinese language to develop refined know-how and dominate world markets. Commerce Secretary Gina Raimondo stated earlier this yr the foundations had been essential to forestall China’s creating military-related applied sciences.
The brand new guidelines include a carve out permitting U.S. funding in publicly traded securities, however the officers stated the U.S. already has authorities below earlier government order barring shopping for and promoting of securities of sure designated Chinese language corporations.
The Home choose committee on China has criticized main American index suppliers for guiding billions of {dollars} from U.S. buyers into shares of Chinese language corporations that the U.S. believes are facilitating the event of China’s army. (Reuters)
