China has issued a stern warning against the United States’ proposed new curbs on high-tech industries, including artificial intelligence (AI). The U.S. Treasury Department announced a rule to restrict U.S. investment in China, prompting a strong reaction from China’s Ministry of Commerce.
China strongly opposes this move by the U.S., which it views as an attempt to hinder China’s economic development and normal business operations. The Chinese government reserves the right to retaliate with corresponding measures if these investment restrictions are implemented.
The U.S. has emphasized that it does not seek to disconnect from China but is determined to restrict American companies‘ investments in China, particularly in sensitive technology sectors crucial for national security. This action has drawn criticism from China for disrupting economic and trade relations between the two countries and undermining the global industrial and supply chain’s stability.
The proposed rule issued by the U.S. Treasury Department implements an executive order signed by President Joe Biden last August. The order aims to prevent sensitive technologies and products from being exploited by countries like China, which pose national security risks to the U.S.
Specifically, the order targets technologies such as semiconductors, microelectronics, quantum information, and AI, which are essential for military, intelligence, and cyber capabilities. If enforced, the regulations may restrict certain transactions and require reporting of other transactions involving these critical technologies.
The proposed rule offers detailed guidelines on covered transactions, exceptions, and technical specifications related to semiconductors, quantum technologies, and AI. The Treasury Department is seeking feedback on the proposal until August 4 before finalizing the rule.
Overall, the U.S.-China tension over high-tech investments highlights the ongoing challenges in their economic and trade relationship. Both nations need to find a balance between national security concerns and fostering innovation and cooperation in the global tech industry.
