The Biden administration said on Monday it was finalizing rules that would limit US investment in China in artificial intelligence and other technology areas that could threaten US national security.
The rules, which were proposed by the US Treasury in June, were guided by an executive order signed by President Joe Biden in August 2023, covering three key areas: semiconductors and microelectronics, quantum information technology and some AI. System.
The new rules will take effect Jan. 2 and will be overseen by Treasury’s newly created Global Transactions Office.
“The narrow set of technologies is critical to next-generation military, cybersecurity, surveillance, and intelligence applications,” Treasury said.
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Paul Rosen, a senior Treasury official, said the rule covers technologies such as “sophisticated code-breaking computer systems or next-generation fighter jets.”
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He added that “U.S. investments, including managerial support and intangible benefits such as access to investment and talent networks that often accompany such capital flows, can be used to help countries of concern develop their military, intelligence, and cyber capabilities.” Shouldn’t be done to help.”
The rule is part of a broader effort to prevent U.S. information from helping the Chinese develop sophisticated technology and dominate global markets.
Commerce Secretary Gina Raimondo said earlier this year that the rules were important to curb China’s development of military-related technologies.
The new rules are intended to allow US investments in publicly traded securities, but officials said the US already has the authority under a previous executive order barring the buying and selling of securities of certain designated Chinese companies. Are.
The House Select Committee on China has criticized major US index providers for directing billions of dollars of American investors into shares of Chinese companies that the US believes are fueling China’s military development. Making it convenient.
,Reporting by David Shepardson, Michael Martina and Trevor Honeycutt; Editing by Lisa Shumaker