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.
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How to Curb Investments in Chinese Technology: Initiatives and Debates in the United States
Author(s)
Mathilde VELLIET
Research Fellow, Center for Geopolitics of Technology, Ifri
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Center for Geopolitics of Technology
Artificial intelligence (AI), 5G, cybersecurity, robotics, semiconductors, space…Technologies—particularly digital technologies—now profoundly affect all human activities and, by extension, international relations. The political, strategic, economic, and social stakes that arise from them are expressed across multiple political levels, involving states, international organizations, and private companies alike. International dynamics of competition and cooperation are being reshaped as a result. To address these challenges, Ifri launched its Geopolitics of Technology Center in 2020, offering a distinctly European perspective on the international issues surrounding so-called critical technologies.
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