The Biden Administration’s Investment Restrictions on China
The Biden administration has finalized restrictions on U.S. investments in advanced technologies in China, focusing on semiconductors, quantum computing, and artificial intelligence (AI). These rules, effective January 2, aim to prevent American resources from aiding China’s military and intelligence advancements. Investments in advanced semiconductor technologies are banned, while those in legacy chips require notification. AI investments depend on their application, with military-focused acquisitions prohibited. Exemptions exist for certain investments, and the regulation addresses patterns identified in a 2023 report highlighting significant U.S. involvement in Chinese AI funding.