US considers investment restrictions in Chinese Chips, AI, and Quantum Computing to curb national security concerns

The US Treasury is considering implementing new rules to restrict US investments and the transfer of expertise in advanced semiconductors, AI, and quantum computing to Chinese companies.

The US administration plans to ban investments in certain Chinese technology firms and increase scrutiny of others, with the goal of addressing concerns that US investors are aiding Beijing’s military advancements. The aim is to curb the flow of American capital and knowledge that could potentially benefit China’s military.

Republican Senator Bill Hagerty also raised the issue of restricting the supply of US goods to Chinese telecom company Huawei, but the Commerce Department has not yet drafted any rules in this regard. Last year, a significant number of export license applications were denied or returned without action as part of efforts to prevent sales that could contribute to Beijing’s military buildup.