The draft rule would prohibit U.S. investors from funding artificial intelligence systems in China that could be used for weapons targeting and other military uses.
The US Treasury Department has developed a proposed rule that would restrict and monitor US investments in China for artificial intelligence, computer chips and quantum computing.
The draft rule developed, issued on Friday, arises from President Joe Biden's August executive order on the access that “countries of interest” have to US dollars to finance advanced technologies that could improve military, intelligence, surveillance and cyber of those nations. capabilities. The order identified China, Hong Kong and Macau as countries of concern.
The Biden administration has sought to hinder the development of technologies by China, the world's second-largest economy, that could give it a military advantage or allow it to dominate emerging sectors such as electric vehicles (EVs).
In addition to the proposed rule, Biden, a Democrat, has also imposed a strict tariff on Chinese electric vehicles, an issue with political implications as both Biden and his Republican presidential opponent, Donald Trump, are trying to show voters who can better cope with China. a geopolitical rival and an important trading partner.
The proposed rule outlines the required information that U.S. citizens and permanent residents must provide when transacting in this area, as well as what would be considered a violation of the restrictions.
It would specifically prohibit American investors from funding artificial intelligence systems in China that could be used for weapons targeting, combat and location tracking, among other military applications, according to a senior Treasury official who presented the rule to reporters on condition of anonymity.
The US Treasury is seeking comments on the proposal until August 4 and is expected to then issue a final rule.
Biden administration officials, including Treasury Secretary Janet Yellen, have insisted they have no interest in “decoupling” from China; However, tensions between the two nations have increased in recent years.
After the US military in February 2023 shot down a suspected Chinese spy balloon off the US East Coast after it passed through sensitive military sites across North America, China threatened repercussions.
Since then, incidents between the two nations based on national security concerns have regularly occurred.
For example, Biden in May issued an order preventing a Chinese-backed cryptocurrency mining company from owning land near a nuclear missile base in Wyoming, calling its proximity to the base a “national security risk.”
