US Treasury implements rule restricting, monitoring American investments in China
Date
10/29/2024 5:45:51 AM
(MENAFN) On Monday, the U.S. Treasury Department implemented a new rule aimed at restricting and monitoring American investments in China, particularly in the fields of artificial intelligence, computer chips, and quantum computing. This action is part of a broader effort to prevent the Chinese military from gaining an advantage in advanced technologies. The finalized rule follows an executive order issued by President Joe Biden in August 2023, which sought to limit access for "countries of concern," specifically China, Hong Kong, and Macao, to U.S. capital for funding technologies that could be used for military and intelligence purposes. The rule is set to take effect on January 2.
Paul Rosen, assistant Treasury secretary for investment security, emphasized that U.S. investments should not aid countries of concern in enhancing their military, intelligence, and cyber capabilities. He highlighted that investments encompass more than just financial resources; they can also provide "intangible benefits," such as management expertise and access to top talent and additional financing sources.
Blocking China's high-tech ambitions is one of the few issues that garners bipartisan support in Washington, appealing to both Republicans and Democrats. In recent months, Biden has taken several steps to curb China's technological advancements, including imposing tariffs on Chinese electric vehicles and establishing export controls to limit the Chinese government's access to advanced computer chips and the necessary production equipment. Former President Donald Trump has also indicated plans to significantly raise taxes on all imports from China if re-elected.
In response to the U.S. action, a Chinese Foreign Ministry spokesperson expressed strong disapproval, stating that China had lodged a formal protest against the restrictions. Lin Jian, during a daily briefing in Beijing, declared, "China strongly deplores and firmly opposes the U.S. rolling out restrictions on investment in China."
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