US investment ban not good for AI sector, China says

According to China’s envoy to the UN, US actions to restrict investment in artificial intelligence in China are not conducive to the “healthy development” of AI technologies.

U.N. Ambassador Fu Cong said Monday the U.S. move would be divisive when it comes to global governance. He spoke after the 193-member U.N. General Assembly unanimously adopted a China-sponsored resolution aimed at strengthening international cooperation on building AI capacity.

The resolution, backed by the United States, calls on rich countries to support developing countries so they have an equal opportunity to use and benefit from artificial intelligence.

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The UN resolution calls on the international community to “ensure and promote a fair, open, inclusive and non-discriminatory business environment throughout the life cycle of safe, secure and trustworthy artificial intelligence systems.”

The Chinese envoy’s statements come after The United States issued draft regulations last month. to prohibit or require notification of certain investments in artificial intelligence and other technology sectors in China that could threaten U.S. national security.

“We are firmly opposed to these sanctions,” Fu Cong told reporters.

Fu said the U.S. actions were not conducive to an inclusive business environment and called on Washington to reverse its decision.

“We do not believe that the U.S. government’s position or decision will be helpful for the healthy development of AI technology, per se, and will therefore divide the world in terms of standards and rules governing AI,” he said.

The U.S. Treasury Department released the proposed rules after U.S. President Joe Biden signed an executive order last August that is part of a broader effort to prevent American expertise from helping the Chinese develop advanced technology and dominate global markets.

Proposed US rules; China’s plan for standards

Meanwhile, on Monday (July 1), some details emerged about the Biden administration’s proposed rules on foreign investment in China.

Davis PolkNew York-based law firm, said the proposed rules would prohibit or impose notification requirements on investments by U.S. citizens and entities they control in companies based in China or owned by Chinese interests. They would cover activities in integrated circuits and microelectronics, quantum information technology, and some applications of artificial intelligence.

In related news, China’s industry ministry said in a statement Tuesday that officials will develop more than 50 new national and industrial standards by 2026.

This goal is in line with the ministry’s guidelines for standardizing systems for the artificial intelligence sector.

• Reuters with additional contributions and editing by Jim Pollard

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