Treasury issues rule to block U.S. investors from helping China develop advanced military technology

The U.S. Treasury Department, seeking to keep the Chinese military from gaining an edge in advanced technologies, issued a rule Monday to restrict and monitor American investments in China in artificial intelligence, computer chips and quantum computing.

The finalized rule arises from an executive order issued in August 2023 by President Joe Biden. The order sought to limit the access that “countries of concern’’ - specifically China including Hong Kong and Macao - have to American dollars to fund technologies that could be used, for example, to break codes or develop next-generation fighter jets. It will take effect Jan. 2.

“U.S. investments … must not be used to help countries of concern develop their military, intelligence and cyber capabilities’’’ said Paul Rosen, assistant Treasury secretary for investment security. He noted the investments can mean more than just money: they can deliver ”intangible benefits,’’ including managerial help and assistance finding top talent and tapping other sources of financing.

https://www.washingtontimes.com/news/2024/oct/29/treasury-issues-rule-blocking-us-investors-helping/