Joe Biden bans US investors from investing in AI, semiconductor, and quantum computing technologies from China
President Joe Biden has signed an executive order restricting US investment in Chinese technology sectors , including artificial intelligence, semiconductors, and quantum computing.
The measure aims to prevent US resources from contributing to China's technological and military growth . China has already expressed its concern and opposition to the order, stating that it disrupts economic cooperation and international trade.
Biden does not want US money to finance Chinese technology
The order allows the U.S. Treasury Secretary to limit U.S. investments in Chinese entities . It specifies that these investments fall within three sectors: artificial intelligence technologies , semiconductors, and quantum computing technologies. The restrictions primarily affect private equity, venture capital, joint ventures, and startup investments. The administration states that the restrictions would " only affect small subsets of these areas ," but the specifics remain vague, leaving room for interpretation.
This move mainly focuses on the Chinese semiconductor industry, with chip developers, electronic design automation software, wafer fabrication tool makers, and chip makers. Electronic design automation tools are one of the main concerns of the US government, as Chinese companies have increased their efforts in this segment. Another concern is China's growing prowess in making tooling for chip production.
The central motivation behind this directive is to prevent U.S. investors from inadvertently bolstering China's technological innovations . The underlying concern is that these innovations could enhance China's military capabilities and potentially compromise U.S. national security. Current investments would not be affected, but past investments would, and there are fears that disclosure requirements regarding past transactions could be triggered. The U.S. Treasury anticipates possible exemptions for specific transactions , including those involving publicly traded instruments and certain intracompany transfers.
Source: Tom's Hardware
