Understanding of restrictions on US investments in China with discs and artificial intelligence

The administration of US President Joe Biden has made plans to reduce the investments of individuals and US businesses in China, focusing on Beijing’s ability to bring about progress in the semiconductor sector, quantum computer and artificial intelligence. The US Treasury said today that the proposed new rules will limit foreign investment in the very important technologies “for the next generation military, intelligence, monitoring or cyber security, which are dangers to the national security of the United States.” A technological struggle prepared for more than a year -part of the Biden strategy to delay the Beijing race to develop sensitive technologies that threaten US national security. US Treasury Secretary Janet Yellen said almost a year ago that the restrictions of the used external investment would be exactly defined and supplement the current export restrictions. These restrictions – announced in October 2022 – form an escalation of the technological struggle of Washington with Beijing, as it prevents the sale of semi advanced compounds, as well as the technology and knowledge needed to produce them. America is considering tightening restrictions on the advent of artificial intelligence. The US Treasury published details of the day through the SO call “Notice of Formulating the proposed bases”, which is one of several bureaucratic steps that began according to an executive order issued last August. The ministry did not set up a timetable for the release of the final rules or the date of its inception. The most detailed proposal shows that Washington pays a growing interest in artificial intelligence. During an interview with reporters on the phone today, a senior US Treasury official said that the US administration would prevent China from developing artificial intelligence applications that could be used with other things to target weapons in combat or comprehensive monitoring, such as tracking sites. The US Treasury will accept the general comments on the proposals until August 4. The details contain the following: What type of investment does this apply? The transactions affected by the proposed measures are scheduled to include shares of shares and financing with debt debt, new investments, joint daring capital projects and certain investments as a limited partner in an investment fund with non -American collective financing. What are the sectors that will be affected? The rules will prohibit specific transactions, or impose a notice of this, related to: semiconductors and micro -electronics, quantitative information technologies, artificial intelligence systems. What are the fines for violating the rules? The US Treasury can impose civil fines on individuals and companies whose violation of the rules and business can refer to the prosecutor’s criminal endeavor office. Are there exceptions? The US Treasury has proposed to release some transactions, including investments in companies traded on the stock exchange, investments that reach “specific size”, and acquisitions on the total share of ownership, in addition to other matters. In a separate context, joint legislative efforts have collapsed between the two parties (Democrat and Republican) to reduce foreign investment at the end of last year. Republicans within the US Congress objected to whether the management approach of the administration should be legalized or relied on individual sanctions for companies. Parliament Speaker Mike Johnson has formed a working group in this regard, with the aim of reaching a consensus by the end of March. No new bill has been released yet.