New Delhi: The Biden administration has recently confirmed new restrictions on US investments in China’s high-tech advanced technology sectors. These include semiconductors, artificial intelligence, and quantum computing sectors based on national security threats. The US Treasury Department said the rules will be effective from January 2, 2024. It will bar US-headquartered firms, citizens, and permanent residents from investing in certain high-tech Chinese enterprises.
Effective next year, the regulations cap state-of-the-art semiconductor and quantum technology deals, which are of utmost significance for the military and cybersecurity. This is because “this final rule ensures that U.S. investment is not exploited to advance key technologies by those who may use them to threaten our national security,” states Paul Rosen, assistant secretary of the Treasury for investment security.
In addition to outright bans, U.S. investors would be required to report on involvement in certain less mature, yet sensitive, technologies such as legacy semiconductors that could still hold security risks.
The restrictions follow an August executive order signed by President Joe Biden aimed at limiting U.S. participation in high-tech sectors in China, including Hong Kong and Macao. China’s foreign ministry responded by calling the order an attempt at “anti-globalization,” expressing “strong dissatisfaction,” and asserting that it would defend its interests if necessary.
Those actions are steps to the most intense competition the United States and China will have both in technologies and security terms. As Washington works to limit the access that the nation enjoys from accessing leading-edge technologies from Beijing, Beijing criticize the moves as disrupting cooperation globally.
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