The US administration plans to introduce new rules to prevent US investors from financing Chinese companies. The move is aimed at banning the flow of money to certain Chinese sectors, according to a Mint report. The decision is seen as an attempt to protect American technological prowess as the rivalry between the two countries escalates.
People familiar with the developments have said the program will likely cover private equity and venture capital investments in advanced semiconductors, quantum computing and some specific fields of artificial intelligence, according to the report.
The program is intended to prevent US investors from providing financing and expertise to Chinese companies that could help improve the speed and accuracy of Beijing’s military decisions.
Briefs provided to lawmakers on Capitol Hill on March 3 discuss considerations being made by the US Treasury and Commerce departments to frame a new regulatory system to address US investment in advanced technologies in abroad that could pose a threat to national security.
The reports did not list the specific technology sectors that the US government considered risky. However, it was clarified that sectors that could improve rivals’ military capabilities would be the focus, the newspaper reported.
“Preventing US capital and expertise from being exploited in ways that threaten our national security without imposing an undue burden on US investors and businesses” would be the primary focus of the program, according to the US Treasury Department report. .us
The report did not list any country names, but experts believe the Biden administration is crafting this new program largely to contain US investments in China.