US Treasury Proposes Strict Rules on Investments in Chinese Tech Sectors

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The United States Department of the Treasury has detailed a proposed rule aimed at monitoring and limiting US investments in China, specifically targeting artificial intelligence, computer chips, and quantum computing. This fleshed-out draft rule, issued on Friday, follows President Joe Biden’s August executive order concerned with restricting access to American capital by “countries of concern” to prevent advancements in technologies that could bolster their military, intelligence, surveillance, and cyber capabilities. Among those identified as countries of concern are China, Hong Kong, and Macau.

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The Biden administration’s strategy aims to curb China’s development in technologies that could potentially provide military advantages or dominate burgeoning sectors like electric vehicles (EVs). Alongside the proposed rule, President Biden has imposed substantial tariffs on Chinese EVs, a move laden with political implications as both Biden and his Republican predecessor Donald Trump vie to demonstrate who can better confront China, a formidable geopolitical rival and significant trading partner.

The proposed rule specifies the mandatory disclosures required from US citizens and permanent residents engaging in transactions involving these sensitive sectors, outlining what constitutes violations of these restrictions. Notably, it would prohibit American investors from financing AI systems in China intended for military applications such as weapons targeting, combat operations, and location tracking, as described by a senior Treasury official who briefed reporters on the rule under anonymity.

The US Treasury is inviting public comments on the proposal until August 4 and plans to issue a final rule thereafter. Despite these measures, Biden administration officials, including Treasury Secretary Janet Yellen, have emphasized their lack of interest in “decoupling” from China. However, tensions between the two nations have escalated in recent years, punctuated by incidents rooted in national security concerns, such as the downing of a suspected Chinese spy balloon off the US East Coast in February 2023 and subsequent retaliatory threats from China.

Additionally, President Biden previously blocked a Chinese-backed cryptocurrency mining firm from acquiring land near a Wyoming nuclear missile base, citing national security risks associated with its proximity to sensitive military installations.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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