Home Biden administration finalizes U.S. curbs on investments in China

Biden administration finalizes U.S. curbs on investments in China

The Biden administration has finalized restrictions to limit U.S. investments in advanced technology in China, such as AI, as announced by the Treasury Department.

Citing national security concerns, the rules have been contemplated over the last year and are now set to be enacted on January 2.

The restrictions will forbid U.S. citizens and American companies from direct engagement in critical sectors including AI, semiconductors, and quantum computing.

Any US investors involved in lesser tech “that may contribute to the threat to the national security of the United States” will be obliged to inform the Treasury of their activity, as detailed in a statement.

Paul Rosen, the assistant secretary of the Treasury for Investment Security stated the measures would ensure “US investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security.”

He went on to detail how hostile foreign states should not be able to benefit from this flow of capital to assist the development of “their intelligence, and cyber capabilities.”

President Biden’s executive order

China reacted with disdain toward the official U.S. position, accusing Washington of engaging in “anti-globalization”.

“Beijing is strongly dissatisfied and firmly opposes the United States’ insistence on introducing restrictions on investment in China, and has lodged solemn representations with the United States,” said a statement from the Ministry of Foreign Affairs.

The curbs follow the executive order signed by Joe Biden last year, curtailing investment in semiconductors and microelectronics, quantum computing, and some AI projects. 

At the time, the 46th and current POTUS warned that U.S. investment dollars could be aiding the development of sensitive technologies in  “countries of concern’’ – specifically China including Hong Kong and Macao – as reflected in the recent comments of the Treasury’s Rosen. 

Acting as a bulwark against Chinese expansion in advanced technology is a rare position that gains bi-partisan consensus from both Republicans and Democrats in Washington.

Image credit: Via Ideogram

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Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

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