Read why US will stop investing in China’s high-tech sector
The US will stop American investment in several areas of China’s high-tech sector, including artificial intelligence, adding to strained ties between the two nations.
US companies must even reveal their investments in China’s high-tech sector.
The much-anticipated move gives the US country new power to screen foreign transactions by private firms. The US said the step would be barely targeted.
However, it is poised to relax further economic ties between the planet’s two biggest economies. China said it was “very disappointed”.
The US “has continuously escalated suppression and restrictions on China,” stated Liu Pengyu, a representative for the Chinese embassy in Washington.
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He said the White House’s claims that the US was not aiming to hurt China’s economy or separate the two nations did not match its activities. “We urge the US side to honour its words.”
The order by US President Biden formally starts the push to draft rules to bar American businesses from funding companies from “countries of concern” active in quantum computing, advanced semiconductors and specific areas of artificial intelligence.
The government will even require US companies to inform the Treasury Department of investments in businesses in a broader range of artificial intelligence and semiconductor technology.
The laws are not expected to apply to so-called portfolio investments, in which companies fund passively in firms via the share market, but are concentrated on active investments made by private equity, venture capital and other businesses.
Source – BBC
