President Joe Biden has taken a proactive approach to managing risks associated with foreign investments and technology transfers in sensitive sectors. In August 2023, he issued an executive order that aimed to limit access to American dollars funding advanced technologies for “countries of concern.” The Treasury Department has now released a proposed rule that stems from this order, which seeks to restrict and monitor U.S. investments in China for artificial intelligence, computer chips, and quantum computing.
The proposed rule, unveiled on June 21, 2024, reflects growing concerns about China’s rapid advancement in these key sectors and the potential security implications for the United States. It is an extension of the government’s efforts to protect national security interests by preventing the transfer of sensitive technology to potential adversaries. The rule underscores the government’s commitment to safeguarding critical technologies and maintaining U.S. technological leadership in strategically important areas.
By implementing these restrictions and monitoring measures, the Treasury Department aims to ensure that U.S. investments do not inadvertently contribute to the development of capabilities that could pose a threat to national security. The rule is part of a broader strategy to address national security risks associated with foreign investments and technology transfers. It reflects the administration’s ongoing efforts to prioritize national security interests above all else, even when it comes at the expense of economic ties with key partners like China.
