Inside one of Equinix's internal operations at the Equinix data center in Ashburn, Virginia, on May 9, 2024.
Amanda Andrade Rhodes | The Washington Post | Getty Images
A US government update showed that measures aimed at limiting US investments in China in sensitive technologies are in the final stage of review.
Under this set of rules, the Treasury Department would require notification of foreign investments to China in sensitive technologies including artificial intelligence, semiconductors, microelectronics, and quantum computing that could be used to develop military capabilities.
The final rules are likely to be released within “the next week or so,” according to Reuters.
The proposals are part of the Joe Biden administration's efforts to restrict the flow of American capital, technology and expertise to China that could support its military modernization and undermine US national security.
In June last year, the US Treasury Department issued proposals including a possible outright ban on some investments in China in these advanced technologies.
“The potential military, intelligence, surveillance, and cyber applications of these technologies and products pose risks to U.S. national security, particularly when developed by a country of concern such as the People’s Republic of China,” the Treasury notice said.
Laura Black, a former Treasury Department official, said the department may try to make the rules official before the presidential election – which is scheduled for November 5 – Reuters reported.
The Treasury Department called on citizens and businesses to submit suggestions to further define the scope of the regulation, as well as opinions on which transactions should be restricted.
The United States passed comprehensive export controls starting in October 2022 aimed at restricting China's access to advanced semiconductor technologies, especially those used in artificial intelligence applications, and imposed a series of heavy tariffs on Chinese imports.
