Trends
U.S. new rules prohibit investment in Chinese AI, tech sector
OUR TAKE On the surface, this move by the U.S. is to safeguard its national interests. In fact, it violates the principles of market economy and fair competition, undermines the international economic and trade order, disrupts the stability of the global industrial chain and supply chain, and will h…
Headline
OUR TAKE On the surface, this move by the U.S. is to safeguard its national interests. In fact, it violates the principles of market economy and fair competition, undermines the international economic and trade order, disrupts the stability of the global industrial chain and…
Context
OUR TAKE On the surface, this move by the U.S. is to safeguard its national interests. In fact, it violates the principles of market economy and fair competition, undermines the international economic and trade order, disrupts the stability of the global industrial chain and supply chain, and will harm the interests of the business communities of China, the U.S and the rest of the world. In essence, it is anti-globalization and desinicization. –Zora Lin, BTW reporter The Treasury Department , part of the Biden administration, issues a 12-page draft rule last week that will regulate certain U.S. investments in semiconductors and microelectronics, quantum computing and artificial intelligence, and prohibit or require restrictions on Chinese investments in AI and other technologies.
Evidence
Pending intelligence enrichment.
Analysis
The Treasury says the new rules are intended to implement “a narrow, targeted national security program” that would focus on certain foreign investments in countries of concern. The order focuses initially on China, Macao and Hong Kong, but U.S. officials have said it could be widened later. “This proposed rule seeks to promote our national security by preventing the many benefits provided by certain U.S. investments, not just capital, from being used to support the development of sensitive technologies by countries that could use those technologies to threaten our national security,” Paul Rosen says, assistant secretary for investment security at the Treasury Department. Also read: U.S. urges allies to tighten control over Chinese semiconductors Also read: Spotify raises U.S. premium plan prices to boost margins
Key Points
- U.S. is to implement the rules by the end of this year, and public comments on the proposed rules will be accepted until August 4.
- The new rules are intended to prevent U.S. funds from helping China develop its capabilities and modernize its military in these areas.
Actions
Pending intelligence enrichment.
