U.S. Mulls Rules To Stop Investments In Chinese Tech With Military Uses

The Treasury Department has fleshed out a proposed rule that would restrict and monitor US investments in China for artificial intelligence (AI), computer chips, and quantum computing, Josh Boak and Fatima Hussein reported for the Associated Press (AP).

The proposed rule stems from President Joe Biden’s August 2023 executive order regarding the access that “countries of concern” have to American dollars that fund advanced technologies. I Photo: RIMPAC / U.S. Navy

The proposed rule stems from President Joe Biden’s August 2023 executive order regarding the access that “countries of concern” have to American dollars that fund advanced technologies, which the US government says would enhance their military, intelligence, surveillance, and cyber capabilities.

The order identified China, Hong Kong, and Macau as countries of concern.

The Biden administration has sought to stymie the development of technologies by China, the world’s second-largest economy, that could give it a military edge or enable it to dominate emerging sectors such as electric vehicles.

In addition to the proposed rule, Democrat Biden has also placed a stiff tariff on Chinese EVs, an issue with political implications as the president and Republican Donald Trump are both trying to show voters who can best stand up to China, a geopolitical rival and major trading partner.