US Considers Restricting Investments and Technology Transfers to Chinese Companies in Advanced Tech Sectors
The US Treasury is considering implementing new regulations that would limit US investments and the transfer of know-how to Chinese companies engaged in advanced semiconductor manufacturing, artificial intelligence, and quantum computing, according to a senior Treasury official.
Paul Rosen, who oversees investment security at Treasury, mentioned during a Senate Banking Committee hearing that efforts are underway to curtail US investment that involves expertise and knowledge in specific sectors such as advanced semiconductors, artificial intelligence, and quantum computing, with a particular focus on China and its military.
This move aligns with the Biden administration’s plan to crack down on American investments in sensitive Chinese industries, with concerns that US investors are inadvertently supporting Beijing’s military development. Additionally, the possibility of restricting the supply of US-origin goods to Chinese telecom company Huawei was discussed, although there is currently no draft rule in place.
The Commerce Department has been rigorously evaluating exports to China, with a significant number of license requests denied or unacted upon in an effort to prevent technology transfers that could bolster Beijing’s militarization efforts.