US Bans American Investment in Chinese High-Tech Sector

In a move that will further strain relations between the US and China, the US government will ban American investment in certain areas of China's high-tech sector, including artificial intelligence.
16 August 2023
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The US government is taking decisive action by prohibiting American investment in certain sectors of China's high-tech industry, such as artificial intelligence. Additionally, US companies will be required to disclose their investments in China's high-tech fields.

This move grants the US government increased authority to monitor foreign transactions conducted by private companies. While the US asserts that its measures are narrowly focused, this development is set to further strain the already tense economic ties between the world's two largest economies.

The Chinese embassy in Washington urged the US to honor its commitments instead of taking actions that contradict its claims of not intending to harm China's economy or separate the two countries.

President Biden continues to formalise the push to create rules that prevent American businesses from investing in "countries of concern" in quantum computing, advanced semiconductors, and select areas of artificial intelligence, US companies will also be required to inform the Treasury Department of their investments in firms working on a wider range of AI and semiconductor technology. 

However, there are concerns that the broad nature of some of the technologies involved could harm the US in the long run, increasing costs and isolating the country from technological advancements. 

- CyberBeat


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