China says new rule banning US tech investment will ‘harm global supply chain’

The US Treasury Department has finalized the rule. investment ban in Chinese semiconductors, artificial intelligence and quantum computing, citing national security concerns.

“The Biden-Harris Administration is committed to protecting America’s national security and keeping critical, advanced technologies out of the hands of those who could use them to threaten our national security,” Assistant Treasury Secretary Paul Rosen said in an Oct. 28 statement.Artificial intelligence, semiconductors and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and some cybersecurity applications.”

China’s leaders have openly opposed the move, with Hong Kong Chief Executive John Lee saying in a statement. October 29 briefing that it would “harm the global supply chain.” Chinese Foreign Ministry spokesman Lin Jian echoed those sentiments in a statement. separate briefingsaying the country’s government “strongly and firmly rejects” the new rules.

The Treasury Department’s so-called “Final Rule” approves implementation of President Biden’s August 2023 executive order, which will take effect January 2, 2025. In practice, it would prohibit U.S. individuals and companies from investing in certain technology industries in China and require them to notify the U.S. government of investments in a range of other technologies, such as older-generation electronic components.