The Joe Biden administration is reported to announce Wednesday new restrictions on American investments in China that involve sensitive technologies.
On Tuesday night, the New York Times reported that the rules would bar U.S. venture-capital and private-equity firms from investing in certain advanced-technology industries in China, including quantum computing, artificial intelligence and advanced semiconductors. It would also require more disclosure when U.S. companies invest in a broad range of Chinese industries.
President Joe Biden was expected to issue a the long-awaited executive order to screen outbound investments in sensitive technologies to China this week, as reported by Reuters on Friday.
Stating that she expects investments in artificial intelligence to be prohibited for military users and uses, and that other investments in the sector will only require notification to the government, Emily Benson of the Center for Strategic and International Studies (CSIS) is reported to have said, “They will have to draw a line on what constitutes a military application of AI, and to define AI.”
“We are not cutting off trade,” national security adviser Jake Sullivan said in April. “We’re simply ensuring that U.S. and allied technology is not used against us.”
The upcoming step has been widely anticipated as the U.S. moves to limit investments, particularly with companies supported by the Chinese military, that could be used to develop technologies that pose national-security risks.