President Joe Biden's administration is finalizing rules to curb Chinese investment in AI and other technology sectors, Reuters reported.
The rule, first proposed by the U.S. Treasury Department in June and directed by an executive order signed by President Biden in August 2023, targets certain AI systems, quantum information systems, semiconductors and microelectronics. . Specifically, the rule pertains to technologies that are core to military and surveillance systems, such as code-breaking computer systems and next-generation fighter jets.
Starting January 2, investors will be able to offer funding and other “intangibles” such as management support and access to investment and talent networks to help China and other “countries of concern” develop their military, intelligence and cybersecurity capabilities. It is prohibited to invest “profits of
The new rules, overseen by the Treasury Department's new Bureau of International Trade, include carve-outs that allow investments in U.S.-listed securities. However, previous executive orders prohibited the buying and selling of securities of certain “designated” Chinese companies.