The United States (US) administration that is preparing regulations to restrict investment into China in the increasingly sensitive technology sector is now in the final stages of review.
Under this set of rules, the Treasury Department will require notification of outbound investments to China in sensitive technologies including artificial intelligence (AI), semiconductors, microelectronics and quantum computing that could be used to develop military capabilities.
Reuters sources said the final answer would be determined in the next week or so.
The proposal is part of the Joe Biden administration's efforts to restrict the flow of US capital, technology and expertise to China that could support its military modernization and undermine US national security.
In June last year, the US Treasury Department issued a proposal that included a potential outright ban on certain investments into China in this advanced technology.
His statement further mentions the potential for military applications, intelligence, technology surveillance and cyber-enabled products that pose a risk to US national security, especially when developed by a worrisome country such as the PRC.
The department also invited citizens and companies to submit proposals to redefine the scope of the regulation as well as opinions on transactions that should be restricted.
Previously, the US approved comprehensive export controls starting in October 2022 aimed at restricting China's access to advanced semiconductor technology especially used in AI applications and has imposed a series of high tariffs on Chinese imports.
