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U.S. Nears Finalization of AI and Semiconductor Investment Restrictions on China

The Biden administration is close to introducing new rules restricting U.S. investments in China’s sensitive technologies, according to a recent government update egulations will require notifications for outbound investments in AI, semiconductors, quantum computing, and other areas with potential military applications, with some investments subject to outright bans.

“The potential military, intelligence, and surveillance applications of these technologies… pose risks to U.S. national security, particularly when developed by a country of concern such as the PRC,” the Treasury Department warned.

The extensive export controls launched in 2022, aimed at limiting China’s access to advanced AI-enabling semiconductors. Public input on these restrictions has also been sought to fine-tune their scope, including suggestions from companies and citizens.

The final rules are to be published “by next week or so” according to Reuters, as the Treasury Department works to have them in place before the November 2024 presidential election. Former Treasury official Laura Black suggests the administration may be expediting the process for political reasons.

These measures reflect a contiby Washington to block U.S. capital and expertise from aiding China’s military advancements, underscoring the geopolitical significance of controlling AI and semiconductor technology flows.

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