From AI to self-sufficiency: 5 things to know about a possible new US ban on investment in China

“I can see curtailment of exports relating to artificial intelligence and cloud computing, two areas that are highly sensitive and relate to national security,” he said.

2. Bans would not be the first

US laws already bar transfers of advanced technology to China, especially in semiconductors, and hold foreign firms to the same rules if they have business in the United States.

A US Department of Commerce entity list also blocks around 600 Chinese companies from conducting deals in the US to protect “sensitive” domestic technologies from any Chinese military use.

3. US businesses face relatively mild restrictions

Yellen said she told Chinese officials during her visit that any investment curbs would be “highly targeted” across a few fields to avoid “unnecessary repercussions”.

Washington basically hopes to keep allowing sales of technology for civilian use, while cutting off military transfers, said Douglas Barry, a Washington-based consultant who follows US-China trade trends.

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