The US Treasury Department has announced new rules aimed at restricting investments in critical technology sectors in China such as artificial intelligence to protect national security. The regulations will prohibit US citizens, permanent residents, and companies from engaging in transactions involving technologies including AI, semiconductors, and quantum computing. Investors will also be required to report investments in other technologies that pose a potential threat to national security. The restrictions are set to take effect on January 2 and are intended to prevent US investments from being used by adversaries to advance technologies that could harm the country’s security.
Paul Rosen, the assistant secretary of the Treasury for Investment Security, emphasized the importance of ensuring that US investments do not support the development of key technologies by countries that could pose a threat to national security. The new rules follow President Joe Biden’s executive order targeting investment in critical technologies last year, warning that such investments could benefit countries developing sensitive technologies.
China’s Ministry of Foreign Affairs criticized Biden’s executive order as an attempt to restrict investment in China and accused the US of engaging in anti-globalization and de-sinicization. The ministry expressed strong opposition to the restrictions on investment and lodged formal complaints with the United States. The new regulations reflect the US government’s increasing focus on protecting critical technologies and preventing them from being exploited by adversaries.
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