U. S. restricts investment in China
2023.05.31 13:44
U. S. restricts investment in China
By Kristina Sobol
Budrigannews.com – A U.S. Treasury official stated on Wednesday that new rules that are being considered would limit the flow of U.S. investments and know-how into Chinese companies working on advanced semiconductors, artificial intelligence, and quantum computing.
“Comes with know-how and expertise to certain specific sectors and subsectors such as advanced semiconductors, artificial intelligence, and quantum computing,” Treasury’s investment security manager Paul Rosen stated in front of a Senate Banking Committee hearing. He specifically mentioned China and its military.
Three sources told Reuters in February that the Biden administration plans to crack down on the billions that American companies have poured into sensitive Chinese sectors by banning investments in some Chinese technology companies and increasing scrutiny of others.
Washington’s China hawks attribute the transfer of capital and valuable expertise to Chinese tech companies that could aid Beijing’s military advancement to American investors.
Separately, Republican Senator Bill Hagerty inquired about efforts to limit the supply of goods from the United States to the Chinese telecom company Huawei.
A license is currently required for exports to Huawei. “We do not have a draft rule at this time,” Commerce Department assistant secretary Thea Rozman Kendler said when asked about revoking these licenses. “We are under deep analysis of this issue.”
A wide range of exports to China are under close scrutiny by officials, who said that last year, they denied or did nothing to stop a quarter of requests to stop sales that would advance Beijing’s militarization.
Kendler stated in written testimony prior to the hearing of the Senate Banking Committee that 5,064 export and re-export license applications were examined in 2022, and approximately 26% were rejected or returned without action.
