United States Sets Restrictions for Investment into Chinese AI

(AmericanProsperity.com) – A new rule has been proposed by the United States Department of Treasury which would restrict and monitor United States investments into China’s artificial intelligence technology, including computing chips and quantum computing.

The rule comes from Joe Biden’s executive order where he mentioned “countries of concern” and the need to limit American dollars that would advance the technologies, surveillance, and cyber-capabilities of those countries. The countries of concern that were mentioned by President Biden were Hong Kong, China, and Macau.

The Biden Administration has looked to halt the production of technology by China that could give them a military advantage or enable the country to dominate certain sectors. Another area of concern from the Biden administration has been electric vehicles. They have placed high tariffs on EVs from China to prevent their importation into the United States.

There is concern over how much information Chinese electric vehicles would be able to send back to their country if they were available in the United States. Biden has warned that the country of concern could use tracking, hacking, and other methods to gain knowledge about the United States via their electric vehicles.

The restrictions on investment include the prohibition of funding AI systems in China from American investors; those systems could be used for targeting weapons, combat, and location tracking. Officials have stated that despite the tariffs and concerns, they have no intention of “decoupling” from China.

Tensions have been high between China and the United States following multiple events, including the U.S. military shooting of a suspected Chinese spy balloon off the East Coast. The incidents have continued and Biden has put restrictions on many areas of China outlining the risk associated with Chinese technology making its way into the country.

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