The new rules announced by the Treasury on Monday will prohibit US-headquartered firms, citizens, and permanent residents from engaging in transactions involving cutting-edge technology with China.
Stemming from an executive order signed last August by US President Joe Biden, the restrictions will take effect on January 2, targeting investments in the fields of semiconductors, artificial intelligence (AI) and quantum computing.
"China firmly opposes the United States issuing final rules on investment restrictions on China and has lodged stern representations with the United States," a spokesperson for Beijing's commerce ministry said in a statement on Wednesday.
"The United States has generalised the concept of national security," the statement said, calling the restrictions a "typical non-market practice".
The rules will "damage the interests" of firms in both China and the United States, the statement warned.
China "reserves the right to take measures", it added.
The world's two largest economies are locked in a contest for supremacy in advanced technology as relations between Washington and Beijing strain under a wide range of fraught economic and geopolitical disputes.
The areas targeted by the latest US curbs "are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications", Treasury assistant secretary for investment security Paul Rosen said in a statement on Monday.
Investors will also be required under the rules to inform authorities about investments in some less advanced technologies that could threaten US national security, the Treasury said.
US finalizes curbs on investing in Chinese tech
Washington (AFP) Oct 28, 2024 -
The administration of President Joe Biden has finalized curbs on US investments in sensitive technologies like semiconductors in China that pose a threat to national security, the Treasury Department said Monday.
The new rules, which take effect on January 2 next year, will prohibit US-headquartered firms, citizens, and permanent residents from engaging in transactions involving cutting-edge technology like semiconductors, artificial intelligence (AI), and quantum computing, the Treasury announced in a statement.
Investors will also be required to inform the Treasury about investments in some less advanced technologies "that may contribute to the threat to the national security of the United States," the statement added.
This will include investment in legacy semiconductors, a senior administration official told reporters on Monday.
"Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications," Treasury assistant secretary for investment security Paul Rosen said in a statement.
"This final rule takes targeted and concrete measures to ensure that US investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security," he added.
The rules are the result of an executive order signed by Biden last August aimed at restricting certain US investments in sensitive high-tech areas in China, including in Hong Kong and Macau.
In response, China's foreign ministry called the executive order an attempt to "engage in anti-globalization and de-sinicization," adding that Beijing was "strongly dissatisfied" and reserved the right to safeguard its interests.
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