How to Curb Investments in Chinese Technology: Initiatives and Debates in the United States

In a continuation of U.S. efforts to slow China's development and acquisition of strategic technologies, Washington has imposed new restrictions on American investment in Chinese technology sectors such as artificial intelligence (AI), quantum, and semiconductors.
Key Takeaways:
- On August 9, 2023, President Biden issued an unprecedented executive order, announcing notification requirements and prohibitions for U.S. tech investments in China.
- Three sectors are targeted: semiconductors, quantum information technology, and artificial intelligence.
- Washington’s main concern is that these investments are accompanied by technology transfers and “intangible benefits” contributing to the development of Chinese military capabilities.
- This concern, first voiced in the 1980s, has received a heightened political response since 2018.
- Considering the emerging consensus in Congress and the multiplication of bills, further measures are likely to be adopted in the coming months.
- The European Union and certain Member States are beginning to reflect on the consequences of U.S. measures, and on the relevance of adopting their own tools to control investment in China.
Available in:
Regions and themes
ISBN / ISSN
Share
Download the full analysis
This page contains only a summary of our work. If you would like to have access to all the information from our research on the subject, you can download the full version in PDF format.
How to Curb Investments in Chinese Technology: Initiatives and Debates in the United States
Related centers and programs
Discover our other research centers and programsFind out more
Discover all our analysesA "DeepSeek Moment"?
DeepSeek, hailed as a champion of Chinese AI, represents less a revolution than a significant optimization of existing technologies. Doubts remain regarding the figures put forward by the start-up, inviting a more measured response to the media hype surrounding China’s technological catch-up. Nonetheless, DeepSeek signals the need to question an economic model based solely on the race for computational power. By betting on open innovation, Europe can carve out its own path in a competition that is far from being a zero-sum game.
Artificial Promises or Real Regulation? Inventing Global AI Governance
The risks inherent to the unregulated use of AI, a key technology and vector of profound transformations within societies underline the pressing need to harmonize governance efforts at the international level. The Summit for Action on Artificial Intelligence to be held in Paris in mid-February could be an unprecedented timely occasion to agree on a global governance framework of AI for the public good.
The European Space Model: Renewing Ambition in a Changing Strategic Landscape
The European space model, based on science, cooperation and trade, is now being undermined by changes in international relations and the economic upheavals brought about by New Space. In light of the war in Ukraine and American disengagement, Europe needs to rethink its strategy by adding a fourth pillar dedicated to defense, in order to strengthen its sovereignty and deter possible aggression against the continent.
AI, Data Centers and Energy Demand: Reassessing and Exploring the Trends
The information and communication technologies sector today accounts for 9% of global electricity consumption, data centers for 1-1.3%, and artificial intelligence (AI) for less than 0.2%. The growing energy demands of cloud services first, and now AI workloads (10% of today’s data centers electricity demand), have exacerbated this trend. In the future, hyperscale data centers will gain shares amongst all kinds of data centers and AI will probably account for around 20% of data centers electricity demand by 2030.