The United States restricts investment in artificial intelligence in China

The United States restricts investment in artificial intelligence in China

American companies will no longer be able to freely invest abroad in the most advanced technologies, foremost among which is artificial intelligence (AI) or quantum computing, if that is the case. “problematic countries”The Treasury announced on Wednesday, August 9 in a press release, citing China in particular.

The decision, resulting from an executive order signed by President Joe Biden, should make that possible “Defend America’s national security by protecting critical technologies from the next generation of military innovations”Treasury said.

Washington also emphasizes this aspect “extremely limited” from the decree for “Maintaining our commitment to cross-border investments”.

In concrete terms, the new rules require US companies and individuals to report certain types of transactions to the administration and block others plain and simple when they engage in it. Entities related to the advanced technologies specified in the decree..

Biden does not want to help modernize the Chinese military

China assumes its desire to acquire basic core technologies that can help modernize its military and production, and this decree is specifically intended to limit US investments in companies involved in this effort.A Biden government official explained during a conference call.

The administration fears that China will benefit from US investments not only in terms of technology transfer but also through ‘intangible benefits’such as providing support in setting up production lines, sharing knowledge and accessing markets.

At the recent G7 summit, leaders emphasized our shared interest in appropriately protecting sensitive technologies with national security implications, and the value of controlling investments in this area.We added from the same source.

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However, the decree should not relate to certain types of transactions, as long as they concern listed companies or subsidiaries of US companies.

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“It’s a big step forward.”Nicholas Lardy, a researcher at PIIE, estimated in an interview with Agence France-Presse (AFP), “Because it is no longer just a question of export restrictions but now also of capital, which has not happened until now.”.

But he believes that if the United States alone seeks to do so “Cut financing from private investment funds or from venture capital”the effect can ultimately be limited.

export controls

In addition, while the volume of transactions and their total amount affected by these restrictions may ultimately be very small, the real impact of this decision could be broader, Emily Benson, project manager for Commerce and Technologies at CSIS believes for her part.

“It is possible that some companies may think twice about the type of investments they can make, even if they are not directly targeted by the ban, which could reduce two-way investments in the long run.”She added in a question to Agence France-Presse.

This new decision is another step in US attempts to prevent China from reducing the technological gap that currently exists between the two superpowers.

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In October 2022, the United States has already announced tighter controls on exports to China of high-end semiconductors used in military applications.

The Netherlands and Japan, also semiconductor producers, followed suit in the United States in March, and China, in turn, responded by announcing export restrictions on some products, including rare metals needed to manufacture semiconductors.

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On a visit to China last July, Treasury Secretary Janet Yellen stressed the desire for precise and targeted action rather than the goal of completely decoupling the economies of the two major world powers.

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“I have indicated that our actions are very targeted and focused on a few sectors where we have national security concerns.”said mr.I Yilin, which was remembered at the same time as the goal Not to cause a complete disruption of investment. Americans in China.

The world with Agence France-Presse

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