US Cracks Down on Investments Aiding China's Military Tech

The U. S. Treasury Department has put forth a new rule to prevent American investors from helping China develop advanced military technology. This rule, which will take effect on January 2, 2024, is a follow-up to an executive order issued by President Joe Biden back in August 2023. The goal is to restrict and monitor investments in key areas like artificial intelligence, computer chips, and quantum computing. These investments not only provide funds but also managerial assistance and access to top talent. Both Republicans and Democrats in Washington support this move to block China's high-tech ambitions. President Biden has already imposed tariffs on Chinese electric vehicles and export controls on advanced computer chips. The Chinese government has protested this latest action, with their Foreign Ministry spokesperson stating that China strongly opposes the U. S. restrictions. The leader of Hong Kong also weighed in, saying the move could harm global supply chains and U. S. trade interests. The new rule requires notification of transactions that might pose a national security threat and can result in significant fines for violators. The Treasury is setting up a new office to oversee these transactions.