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US Restricts Investment in China’s Semiconductor, AI Industries

Written: 2024-10-29 10:39:36Updated: 2024-10-29 10:48:39

US Restricts Investment in China’s Semiconductor, AI Industries

Photo : YONHAP News

The U.S. government has decided to restrict American investments in China’s artificial intelligence, semiconductor and quantum computing sectors if they are deemed to threaten national security. 

The U.S. Treasury Department issued a new rule on Monday that will limit U.S. investments in “countries of concern,” including China, Hong Kong and Macau, for technologies with military applications.

The restrictions are set to take effect January 2.

The rule mandates that U.S. individuals and companies report transactions involving “technologies and products that may contribute to a threat to the national security of the United States” to the federal government.

The White House said, as specified in an executive order from President Joe Biden, the final rule prohibits U.S. persons from engaging in certain transactions involving certain technologies and products that pose serious national security threats to the U.S.

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