US Congress warns of tougher China investment rules

intend to completely ban investment in Chinese cybersecurity and artificial intelligence companies, Congressman McCall said. Politico pointed out,

The US will introduce stricter than previously reported rules for investing in the Chinese economy. Some high-tech industries, such as semiconductor manufacturing, 5G, artificial intelligence, quantum technology, cybernetics, will fall under a complete ban, the new chairman of the House Foreign Affairs Committee, Republican Michael McCall, told Politico.

The congressman said that he learned this information from “recent conversations”, four other members of Congress and former national security officials told the newspaper about the new US sanctions. According to McCall, the White House will publicly announce its intention to "stop the flow of capital" into high-tech areas.

“What they really want to say is, like, you can’t invest in any [Chinese] AI company. You can't invest in any cybersecurity company or other similar sectors, the congressman explained.

The investment ban has been in development for a long time, before the US presidential administration said the rules would be "carefully tailored" so that they only affect CHINA 's high-tech sector that threatens US national security. Politico points out that according to McCall, it will be a broad sectoral control over investment, albeit in a limited number of industries.

The White House, in response to a request from Politico, declined to specify the sectors of the Chinese economy in which it is planned to impose restrictions on investment. They emphasized the importance of a precise definition of the object of sanctions, "especially given the nature of dual-use technologies."

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Last August, US President Joe Biden signed into law a $52.7 billion subsidy bill for semiconductor manufacturing and research. Thanks to this, the US should become more competitive, the White House explained.

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By autumn, the US authorities banned the supply of semiconductors of their own production to China , as well as those that were created using any American technology. Experts interviewed by the Financial Times felt that this would entail a "tsunami of change." “To put it mildly, [Chinese companies] are actually going back to the stone age,” said Seho Ng, managing DIRECTOR of China Renaissance.