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The Biden administration announced on Monday that it is finalizing regulations aimed at restricting US investments in technology sectors in China deemed a threat to national security. These rules, proposed by the US Treasury in June and directed by an executive order signed by President Joe Biden in August 2023, focus on three key areas: semiconductors and microelectronics, quantum information technologies, and particular artificial intelligence systems.
Effective January 2, 2024, these regulations will be managed by the newly established Office of Global Transactions at the Treasury. This limited set of technologies is seen as essential for next-generation military, cybersecurity, surveillance, and intelligence applications, including advanced codebreaking systems and next-generation fighter jets. Senior Treasury official Paul Rosen emphasized that investments must not aid countries of concern in enhancing their military intelligence or cyber capabilities.
This initiative is part of a broader effort to prevent US expertise from aiding China in developing advanced technologies and dominating global markets. Commerce Secretary Gina Raimondo highlighted the importance of these rules in hindering China’s military-related technological growth. A provision allows US investments in publicly traded securities, while authorities under previous executive orders already restrict the trading of stocks from specific Chinese firms implicated in military advancements.