US Finalizes Rule on Chinese Tech Investments

The Biden administration has finalized new regulations restricting U.S. investments in China's critical technology sectors, including semiconductors, microelectronics, quantum information technologies, and certain AI systems, due to national security concerns. These rules, which will take effect on January 2, 2025, aim to prevent U.S. capital from inadvertently supporting China's military advancements. The regulations require U.S. individuals and companies to notify the Treasury Department of certain transactions and prohibit investments in defined sensitive technologies. Hong Kong's leader criticized the move, suggesting it harms global trade and U.S. economic interests, while analysts warn that the restrictions could further intensify tensions between the U.S. and China, affecting innovation and growth. The policy is part of a broader strategy to curb China's access to technologies that could bolster its military capabilities and is seen as an extension of existing export controls.