— The Biden administration will try to slow Beijing's development of next-generation technologies that could have military and intelligence applications — like advanced semiconductors, artificial intelligence and quantum computing — by limiting some American investment in those sectors in China.issued by President Biden on Wednesday outlines new regulations that will subject investments by American firms to unprecedented new federal oversight by the Treasury Department.
Under the order, Americans will be barred from making investments in China's advanced chip sector. Investments in less-advanced chips and artificial intelligence will be permitted, but will require U.S. government notification. Investment in quantum computing – specifically the development of computers, sensors and networks – will be prohibited.
Senior administration officials repeatedly emphasized in a briefing Wednesday that the U.S. remains committed to capital investment between the world's two largest economies. Indeed, officials said they were trying to limit the transfer of so-called"intangible" benefits — namely American expertise — that could accelerate the development of Chinese technology.
"I want to allay their fears that we would do something that would have broad-based impacts on the Chinese economy," Yellen said at a July press conference in Beijing."That's not the case. That's not the intention." "[E]ven though we will be taking these actions, just as they take policy actions that we don't agree with, we think it's still important that we have the ability to have conversations about our areas of disagreement so we can make sure that the relationship doesn't deteriorate," Miller said.
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