America is setting strict restrictions on investment in Chinese slide technology

The administration of US President Joe Biden has completed restrictions on the investments of individuals and US businesses in advanced technology in China, including semiconductors, quantum computer science and artificial intelligence. Restrictions, which are more than a year of deliberation, prohibit some investments in those industries and require the US government to be notified of any other investments. This measure aims to prevent US capital and experience China from helping to develop important technologies that can give Beijing a military advantage. Paul Rosen, Assistant Minister of the Treasury for Investment Safety Affairs, said in a press release: The final framework of the restrictions, which will come into effect on January 2, is largely in line with the proposal revealed in June, with additional explanations on the technical standards of the Rules and the expectation of the US government. For example, a senior management officer stated that the rules banned US investments in Chinese businesses, which focus on advanced semiconductor technologies, but only require notice when investing in Chinese enterprises in the production of ‘old chips’, which are components of previous generations used in electronic devices. These supplementary rules come to improve the restrictions imposed on the export of advanced chips to China. Military applications and at the same time are the regulations associated with investment in artificial intelligence depends on both the computer power used to train the artificial intelligence system in question, as well as its intended use. Al Qaeda prohibits US individuals and businesses to obtain shares in Chinese artificial intelligence companies focusing on military applications, as investment in artificial intelligence models with other applications is subject to prohibition or notice. Restrictions include exceptions for some categories of capital flow, such as securities distributed in public, and some limited partnership investments. The official explained that the purpose of these rules is to organize the investment patterns identified in a report issued in 2023 by the “Emerging Security and Technology Center”, which is the Washington -based research center. The researchers found that the Americans participated in 17% of the global investment agreements with Chinese artificial intelligence companies between 2015 and 2021, and 90% of the transactions were in the investment capital phase.