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The US administration plans to introduce new rules to prevent US investors from funding Chinese companies. The move is aimed at prohibiting the flow of money to certain Chinese sectors, according to a report by Mint. The decision is seen as an attempt to protect American technological prowess as the rivalry between the two countries escalates.
People aware of the developments have said that the programme will likely cover private equity and venture capital investments in advanced semiconductors, quantum computing, and some specific fields of artificial intelligence, the report said.
The programme aims to stop American investors from facilitating funding and expertise to Chinese companies that could help improve the speed and accuracy of Beijing's military decisions.
The reports provided to lawmakers on Capitol Hill on March 3 talk about the considerations the US Treasury and Commerce departments are making to frame a new regulatory system to address US investment in advanced technologies abroad that could pose a threat to national security.
The reports did not list the specific technology sectors that the US government considered risky. However, it was clarified that sectors that could advance rivals' military capabilities would be the focus, the newspaper reported.
"Preventing US capital and expertise from being exploited in ways that threaten our national security while not placing an undue burden on US investors and businesses" would be the programme's primary focus, according to the US Treasury Department report.
The report did not list any country names, but experts believe that the Biden administration is working out this new programme largely to contain US investments in China.
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First Published: Mon, March 06 2023. 11:32 IST
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