New Delhi. Keeping national security in mind, the US has implemented new rules on US investment in China in important technological areas like Artificial Intelligence (AI), semiconductor and quantum computing. The US Treasury Department announced this on Monday.
According to the Treasury Department, under these new rules, US citizens, permanent residents and US-based companies are restricted from investing in certain technologies, including AI, semiconductor and quantum computing. This step has been taken so that these technologies cannot be used by China to boost its military, intelligence and cyber capabilities.
Less advanced technologies will also be monitored
Under this new law, American investors will have to inform the Treasury Department about investments in certain less advanced technologies that may pose a threat to national security. Assistant Secretary of the Treasury Paul Rosen said the move is to ensure that “American investments are not used by any country that aims to threaten our national security.”
Ban on US investment and management cooperation
Paul Rosen said that American investment should not be used to increase the military, intelligence and cyber capabilities of countries like China. He also said that the managerial support and access to investment and talent networks provided by such investments will not be misused.
New restrictions came after President Biden’s order
These restrictions follow an executive order issued by President Joe Biden last year in which he called for a ban on investment in semiconductors, microelectronics, quantum computing and some AI capabilities. Biden warned that US investments could help adversary countries develop sensitive technologies that could boost their capabilities in military, intelligence, surveillance or cyber security.
China gave a strong reaction
China’s Foreign Ministry has given a strong reaction to this step of America. He called Biden’s executive order an “anti-globalization and desinititization effort.” China has lodged “strong protest” against America’s move and also raised a formal objection.
“Beijing is deeply dissatisfied and strongly opposed to the US’s efforts to impose restrictions on investment in China, and we have filed a serious representation with the US,” China’s Foreign Ministry said in a statement.
Tags: Business news, China and america
FIRST PUBLISHED : October 29, 2024, 11:57 IST
