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Washington bans US companies from investing in China's artificial intelligence sector
World News
2023-08-10 | 03:03
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Washington bans US companies from investing in China's artificial intelligence sector
The United States has imposed a ban on foreign investments by American companies in advanced technology fields, particularly artificial intelligence (AI) and quantum computing, in "problematic countries," with China at the forefront, according to a statement announced by the Treasury Department on Wednesday.
The decision, stemming from a decree issued by President Joe Biden, is presumed to allow the "defense of American national security by protecting sensitive technologies of the new generation of military innovations," according to the Department. The statement also emphasized the "very limited" nature of the decree, insisting on the commitment to "our foreign investments" by American companies.
In practice, the new rules require American companies and individuals to notify the administration of certain transactions, while explicitly banning other dealings that include "entities related to the advanced technologies referred to in the decree."
A U.S. administration official clarified that "China is seeking to possess and produce key technologies that could assist in modernizing its army," adding that this decree "specifically aims to limit American investments in companies involved in this effort."
The restrictions are seen as part of a broader strategy to prevent sensitive technological advancements from falling into the hands of nations considered to be rivals or potential threats to U.S. interests. While the focus is clearly on China, the implications of these rules could potentially affect various foreign investments in other countries as well.
The move emphasizes the United States' ongoing concerns about technological competition and security risks, particularly in areas that could have significant military applications. It also reflects a growing international focus on the potential risks and rewards associated with cutting-edge technologies such as AI and quantum computing.
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