US President Joe Biden has escalated the technology trade war with China by issuing an executive order that will limit investment in various sectors, including semiconductors and AI. Despite the potential disruption to the global tech supply chain, major trade groups and US allies have responded cautiously thus far.
The executive order, issued on Wednesday, grants the US Treasury the authority to implement specific regulations following a 45-day consultation period, during which interested parties can provide comments that will be taken into consideration for a draft of the new rules. The new regulations will impact three sectors: semiconductors and microelectronics, quantum information technologies, and certain AI systems.
“This program aims to prevent foreign countries of concern from exploiting US investment in this specific set of technologies that are crucial for their development of military, intelligence, surveillance, and cyber-enabled capabilities, which pose a risk to US national security,” Biden wrote in a letter to Congress.
While Biden’s executive order does not mention any specific country, the People’s Republic of China (PRC), including the Special Administrative Region of Hong Kong and the Special Administrative Region of Macau, were identified as countries of concern in an annex.
US to restrict investment in China in these technologies
Although the final details of the new US investment restrictions will be determined in the coming months, a fact sheet released by the Department of Treasury outlines several specific technologies that are being considered:
Semiconductors and microelectronics: Electronic design automation software; semiconductor manufacturing equipment; fabrication of advanced integrated circuits; and the installation or sale of supercomputers.
Quantum information technologies: The production of quantum computers and certain components, including sensors; quantum networking; and quantum communication systems.
AI systems: Software that utilizes AI for military or intelligence operations.
The US-China tech trade war continues
The Biden administration began imposing restrictions on the export of chips and chip-making technology to China last year, with the stated goal of preventing China from accessing advanced technology for military modernization and human rights abuses.
In response to the export controls, the Biden administration has launched several initiatives to enhance domestic semiconductor production. On the one-year anniversary of President Biden signing the CHIPS Act, it was announced that over 460 companies have expressed interest in securing government semiconductor subsidy funding.
However, restricting US companies’ investments in China under the guise of national security is a clear example of stretching the concept of security and politicizing business…
2023-08-12 19:24:02
Link from www.computerworld.com rnrn