The US Treasury Department proposed a new rule on Friday to monitor and restrict key investments by the United States in China, targeting areas such as artificial intelligence, computer processors, and quantum computing.
The initiative aligns with President Biden’s executive order in August, which focuses on countries of concern including China, Hong Kong, and Macau.
The goal is to prevent China from using American funds to enhance its military and surveillance capabilities. Assistant Secretary of the Treasury Paul Rosen emphasized that this rule protects national security by restricting investment in sensitive technologies.
The Biden administration also imposes tariffs on Chinese electric vehicles, solar panels, and batteries.
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Despite these measures, Treasury Secretary Janet Yellen stated that the US does not intend to “decouple” from China, although tensions remain high. The Treasury Department is seeking public input on the rule until October 2024, after which it will be finalized.
Additionally, President Biden recently shut down a Chinese-backed cryptocurrency mining company near a nuclear base in Wyoming due to security risks. Senator Bob Casey highlighted the dangers of American investment in China’s artificial intelligence and semiconductor industries.
