The administration of President Joe Biden announced the completion of rules that limit American investments in the artificial intelligence sector and other technological areas of China that could threaten the national security of the United States. The rules, proposed by the U.S. Department of the Treasury in June, were directed by President Biden in August 2023 and cover three key sectors: semiconductor and microelectronics, quantum information technologies, and certain artificial intelligence systems.
Paul Rosen, a senior official at the Treasury Department, noted that regulated purchases by the U.S., including non-recurring expenses, such as managed assistance and access to investment and talent, should not be used to assist partner countries in developing their military, intelligence, and cyber capabilities.
The new rules will take effect on January 2 and will be controlled again by the created Treasury agency. Gina Raimondo, the commerce secretary, noted that these rules are critically important to prevent the development of Chinese military technologies. The rules presuppose the possibility of American investments in publicly traded securities, but there already exist restrictions based on the previous president's order, banning the purchase and sale of securities of certain designated Chinese companies.
Treasury representatives noted that "a narrow range of technologies is key for the next generation of military, cybersecurity, surveillance, and intelligence applications." The panel representatives on the issue of China criticized major American suppliers of indices for the billions of dollars from investors in the U.S. into the shares of Chinese companies, which, in the view of the U.S., contribute to the development of Chinese military technologies.
