Nandini Roy Choudhury, writer
Brief news
- The U.S. government is finalizing measures to restrict investments in China related to sensitive technologies, including AI and semiconductors, to protect national security.
- Final guidelines are expected soon, as part of the Biden administration’s efforts to limit financial and technological flows to China.
- The Treasury Department is seeking public feedback on these regulations, which may be released before the upcoming presidential election.
Detailed news
According to an update provided by the United States government, the measures that are intended to restrict the amount of money that the United States invests in China for sensitive technology are currently in the last stage of evaluation.
The Treasury Department will be required to provide notification of any outbound investments into China that involve sensitive technology such as artificial intelligence, semiconductors, microelectronics, and quantum computing. These technologies have the potential to be utilized for the development of military capabilities.
According to Reuters, the final guidelines are expected to be available for public consumption within the “next week or so.”
These measures are a component of the efforts that the administration of Joe Biden is making to restrict the flow of finance, technology, and talent from the United States into China. This flow might be used to promote China’s military development and could also damage the national security of the United States.
A number of suggestions were made public by the United States Treasury Department in June of the previous year. These ideas include the possibility of outright prohibitions on some investments into China that include cutting-edge technologies.
A letter from the Treasury Department stated that “the potential military, intelligence, surveillance, and cyber-enabled applications of these technologies and products pose risks to the national security of the United States of America,” particularly when the technologies and products were created by a country of concern such as the People’s Republic of China.
It was reported by Reuters that a former officer of the Treasury government named Laura Black stated that the government could be attempting to make the regulations public before the presidential election, which is scheduled to take place on November 5.
The Treasury Department had extended an invitation to both individuals and businesses to provide their feedback on recommendations for further defining the scope of the rule, as well as thoughts on transactions that need to be limited.
China’s access to sophisticated semiconductor technology, notably those utilized in artificial intelligence applications, has been restricted as a result of the United States’ implementation of extensive export regulations beginning in October 2022. Additionally, the United States has slapped a series of substantial tariffs on Chinese imports.
Source : CNBC News
