The US Department of the Treasury proposed a new rule on Friday to monitor and restrict key US investments in China, targeting areas such as artificial intelligence, computer processors, and quantum computing.
This move aligns with President Biden’s executive order in August, which focuses on countries of concern including China, Hong Kong, and Macau.
The goal is to prevent China from using US funds to enhance its military and surveillance capabilities. Assistant Secretary of the Treasury Paul Rosen emphasized that the rule aims to protect national security by limiting investments in sensitive technologies.
The Biden administration has also imposed tariffs on Chinese electric vehicles, solar panels, and batteries.
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Despite these measures, Treasury Secretary Janet Yellen stated that the US does not intend to “decouple” from China, even though tensions remain high. The Treasury Department is seeking public comments on the rule until November 2024, after which it will be finalized.
In addition, President Biden recently shut down a Chinese-backed cryptocurrency mining company near a nuclear base in Wyoming due to security risks. Senator Bob Casey highlighted the dangers of US investments in China’s artificial intelligence and semiconductor industries.
