The Treasury Department has unveiled a proposed rule aimed at monitoring and limiting U.S. investments in China related to artificial intelligence, computer chips, and quantum computing. This move follows President Joe Biden's executive order from August 2023, which focuses on controlling the access of 'countries of concern' to American funding for advanced technologies that could bolster their military and intelligence capabilities. China, Hong Kong, and Macau have been identified as countries of concern under this order.
The Biden administration's objective is to impede China, the world's second-largest economy, from developing technologies that could provide it with a military advantage or dominance in sectors like electric vehicles. In addition to the proposed rule, President Biden has imposed significant tariffs on Chinese electric vehicles, a decision with political implications as both Biden and former President Donald Trump vie to demonstrate their toughness on China.
