Biden Administration Proposes Limits on Investments in Chinese Tech Over Security Concerns.

 

 

The Biden administration has proposed new requirements that would constrain U.S. investments in artificial intelligence and other critical technology sectors in China due to national security concerns.

The U.S. Treasury Department, on Friday, announced new proposed requirements for some transactions and bans on others involving U.S. outbound investments in the development of artificial intelligence, quantum computing, semiconductor, and microelectronics technologies. 

 

“This proposed rule advances our national security by preventing the many benefits certain U.S. investments provide—beyond just capital—from supporting the development of sensitive technologies in countries that may use them to threaten our national security,” Assistant Treasury Secretary for Investment Security Paul Rosen said.

The proposal specifically lists the People’s Republic of China—including the territories of Hong Kong and Macau—as a country of concern for which new U.S. investments may be restricted or prohibited.

Under the proposed rules, certain types of investment are banned outright, and others have to be flagged with the treasury.

Fully prohibited transactions include supercomputers or quantum computers and computing components for military purposes such as targeting, target identification, combat system logistics and maintenance; computing tools for intelligence or mass surveillance applications; and AI tools for sequencing biological data.