The Biden Administration will try to slow Beijing's development of next-generation technologies that could have military applications -- like advanced semiconductors, artificial intelligence and quantum computing -- by limiting the ability of U.S. corporations to invest in those sectors in China.
The rules would not take effect for at least a year, and there will be a public comment period so businesses and other groups can weigh in on the new rules before they are finalized. The administration's initial plans to limit US investment were more sweeping. But, after months of engagement with the private sector, the focus of the new regulations narrowed.
"I want to allay their fears that we would do something that would have broad based impacts on the Chinese economy,"Still, Xie Feng, China's ambassador to the United States, has warned that Beijing will respond.