Under new rules finalized by the Biden administration on Monday, some U.S. investments in artificial intelligence, semiconductors and quantum computing will be blocked on national security grounds.
This final rule is triggered by an executive order signed by President Biden in August 2023 that prohibits U.S. investors from making certain investments in these areas of China that may support China’s military development. It establishes a new program that is prohibited. The Treasury Department’s announcement also requires the U.S. government to disclose other investments in these technologies in China.
Over the past year, the administration sought input from outside stakeholders and U.S. allies in finalizing this order, including a review of the technologies and programs that will be applied to the U.S. Department of Treasury. Contains details of the information that needs to be disclosed.
A senior Biden administration official explained that the final rule is “focused on national security and provides scope to address specific risks posed by certain U.S. foreign investments in China.” “This maintains our long-standing commitment to open investing,” the person added.
The rules apply to a variety of transactions, including greenfield investments, corporate expansions and joint ventures, but include exceptions, such as investments in publicly traded securities and certain limited partners. Under the rules, U.S. companies would be blocked from buying land in China to develop quantum research facilities, officials said, citing one example.
