The United States is proposing rules that would prevent Americans from investing in Chinese technology for military use

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The United States is proposing rules that would prevent Americans from investing in Chinese technology for military use

WASHINGTON (AP) — The Treasury Department released a proposed rule Friday that would limit and monitor U.S. investments in China for artificial intelligence, computer chips and quantum computing.

The proposed rule stems from an executive order issued by President Joe Biden in August 2023 regarding “nations of concern” access to US money to fund advanced technologies the US government says will improve their military, intelligence and surveillance capabilities. The order identified China, Hong Kong and Macau as countries of concern.

The Biden administration has sought to block the development of technologies in 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.

In addition to the proposed rule, the Democratic president has also imposed stiff tariffs on Chinese electric vehicles, an issue with political implications as the president and Republican Donald Trump seek to show voters who is better at taking on key geopolitical rival China. Trading partner.

The proposed rule sets forth the required information that U.S. citizens and permanent residents must provide when engaging in transactions in this area, as well as what would be considered a violation of the regulations.

In particular, the US Investors would be barred from funding artificial intelligence systems in China, which are used for weapons targeting, combat and location tracking, and other military applications, a senior Treasury Department official who filed a notice ahead of the rule told reporters, speaking on condition of anonymity.

The Treasury Department will solicit comments on the proposal until August 4, 2024, and is expected to issue a final decision after that date.

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Biden administration officials, including Treasury Secretary Janet Yellen, have insisted there is no desire to “disengage” from China; However, tensions between the two countries have increased in recent times.

When the U.S. military shot down a Chinese spy balloon off the Carolina coast in February 2023, China threatened repercussions after it flew over key military bases across North America.

Since then, there have been occasional incidents between the two countries based on national security.

For example, in May Biden issued an order barring a Chinese-backed cryptocurrency mining company from owning land near a missile site in Wyoming.

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Associated Press writer Fatima Hussain contributed to this report.

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