Congress to vote on new restrictions on US investment in China By Reuters
Written by David Shepardson
WASHINGTON (Reuters) – Congress will vote in the coming days on legislation to ban U.S. investment in China as part of a spending bill in mid-March, lawmakers said on Tuesday night.
In October, the Ministry of Finance finalized the rules effective Jan. 2. which would limit US investment in artificial intelligence and other technology fields in China that could threaten US national security.
The bill expands on those restrictions and includes other provisions aimed at China’s concerns, including a requirement to study the national security risks posed by Chinese-made consumer routers and modems and authorizing a review of purchases of Chinese homes near additional areas of national security concern.
China’s embassy in Washington did not immediately comment.
The bill would also require the Federal Communications Commission to publish a list of all businesses that have both FCC (BME:) license or approval and has the ownership of foreign governments, including China to ensure that the commission “knows where the communication and technology companies have contact with a foreign enemy.”
Lawmakers have criticized major U.S. index providers for directing billions of dollars from U.S. investors to stocks of Chinese companies the U.S. believes are helping China’s military development.
The Treasury Department’s rules and regulations cover semiconductors and microelectronics, quantum information technology and certain AI systems aimed at preventing investment in Chinese technology such as code-breaking computer systems or next-generation fighter jets.
Representative Rosa DeLauro, the top Democrat on the House Appropriations Committee, said “for years I have watched American dollars and intellectual property fuel the skills and abilities of the Chinese Community Party… This legislation builds on the legislation put in place by Biden this year. Administration, and sets the stage for continued efforts of bipartisanship to protect and rebuild our critical national capabilities.”
The resulting rule includes the technologies listed in Treasury’s order and adds additional AI models that use other semiconductors, AI systems designed for military or government test end use, hypersonic systems and additional externally controlled technologies.
