President Joe Biden has signed an executive order that restricts certain U.S. investments in sensitive technology in China and mandates government notification of funding in other tech sectors. The order allows the U.S. Treasury secretary to regulate investments in Chinese entities in semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. This move may escalate tensions between the world's two largest economies.
authorizes the U.S. Treasury secretary to regulate certain U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems, the officials said.
The order is aimed at preventing American capital and expertise from helping develop technologies that could support China’s military modernization and undermine U.S. national security. It is focused on private equity, venture capital, joint venture and greenfield investments. The regulations will only affect future investments, not existing ones, an administration official told Reuters.
Emily Benson of the Center for Strategic and International Studies , a bipartisan policy research organization, said she expects investments in artificial intelligence to be prohibited to military users and uses, and that other investments in the sector will only require notification to the government.
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