US imposes new AI and tech investment bans on China
- The US Treasury has finalized regulations barring investments in critical technology sectors in China, including AI and semiconductors, effective January 2.
- These regulations require US investors to report investments in technologies that may threaten national security, following previous executive actions by President Biden.
- This move marks a significant escalation in efforts to prevent adversaries from advancing technologies critical to military and cyber capabilities.
The United States has implemented new regulations to restrict investments in advanced technology sectors in China, effective January 2. These regulations prohibit US citizens and entities from engaging in transactions related to key areas such as artificial intelligence, semiconductors, and quantum computing. The Treasury Department stated that this move is aimed at preventing national security risks associated with the advancement of technologies that could be utilized by countries perceived as threats. Furthermore, US investors will need to report investments in less advanced technologies that might still pose risks to national security. These curbs follow President Biden's executive order last year targeting similar technological sectors, as concerns grow over the potential enhancement of military and cyber capabilities in adversarial states. China's government has condemned these restrictions, asserting that they undermine globalization and relations between the two countries, marking a point of tension in US-China relations.