The U.S. Treasury Department this week announced new rules restricting U.S. investments in China for military technology purposes.
The Treasury Department on Monday announced new rules aimed at restricting and monitoring U.S. investment in China’s artificial intelligence, semiconductor and quantum computing fields. The move is part of an effort to prevent China’s military from gaining an upper hand in advanced technology.
rule:
The new rules stem from an executive order issued by President Joe Biden in August 2023 aimed at curbing the flow of U.S. capital into “countries of concern,” including China, Hong Kong, and Macau. be. The order targets military-applied technologies such as code-breaking and next-generation fighter jets. The restrictions are scheduled to come into effect on January 2nd.
The rule limits investment and requires U.S. individuals and companies to report to the federal government any transactions involving “technology or products that may contribute to a threat to the national security of the United States.” .
Violators may be subject to fines of up to $368,136 or twice the amount of the prohibited transaction, whichever is greater. The Treasury Department is establishing the Office of International Trade to enforce the new regulations.
The U.S. Treasury building seen in Washington, DC on January 19, 2023. On October 28, 2024, the Treasury Department announced new rules restricting U.S. military technology investments in China. The U.S. Treasury building seen in Washington, DC on January 19, 2023. On October 28, 2024, the Treasury Department announced new rules restricting U.S. military technology investments in China. Saul Loeb/AFP via Getty Images/Getty Images
Past limitations:
In May, Biden imposed steep tariffs on electric vehicles imported from China and introduced export controls that block China’s access to advanced computer chips and the machinery needed to produce them.
Meanwhile, former President Donald Trump has promised to increase taxes on all Chinese imports if re-elected.
Before releasing the final version, the Biden administration consulted with businesses and U.S. allies.
Curbing China’s high-tech ambitions is one of the few issues with strong bipartisan support in Washington.
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Paul Rosen, assistant secretary for investment security, said in a statement: “The Biden-Harris administration will protect America’s national security and ensure that critical advanced technology is not in the hands of those who could use it to threaten national security. We are working to ensure that it does not pass on to the public.” Intelligence, semiconductors, and quantum technologies are fundamental to the development of next-generation military, surveillance, intelligence, and certain cybersecurity applications, such as cutting-edge code-breaking computer systems and next-generation fighter jets, and this final rule , we are taking concrete, targeted measures. Ensure that U.S. investments are not misused to facilitate the development of critical technologies by those who may use them to threaten national security. ”
Rosen continued, “U.S. investments, including intangible benefits such as management support and access to investment and talent networks that accompany these capital flows, support the development of military, intelligence, and cyber capabilities in countries of concern. “It should not be used for any purpose,” he added.
This article includes reporting from The Associated Press.
