On Tuesday, lawmakers said that in the next few days, Congress will hold a vote on legislation restricting investment in China by the U.S. as part of a bill to fund federal operations through mid-March.
The Treasury finalized rules in October, which would be in effect on 2 January. The rules intended to limit U.S. investment in technology such as artificial intelligence in China that could threaten U.S. national security.
Not only does the new bill expand upon existing restrictions, but also includes provisions to address the national security risk posed by China itself. This would include studying national security risk from China consumer network equipment, and reviews on Chinese real estate purchases near important government sites.
The Chinese Embassy to the U.S. in Washington did not immediately comment or respond to the upcoming vote.
The bill also included a requirement for the Federal Communication Commission (FCC) to release a list of every entity that both held an FCC license or authorization and has had ownership by foreign “adversarial” governments such as China to ensure that the FCC recognized any telecom and tech company that has a connection to such government.
Many U.S. companies have been criticized by policymakers for allegedly pouring billions of American dollars into Chinese companies that help develop the Chinese military.
The Treasury rules and legislation include: semiconductor and microelectronics, quantum information technologies, and certain AI systems. This restriction aims to prevent China from developing military technologies like code-breaking computer systems or next-generation combat aircraft.
Representative Rosa DeLauro from the Democrat party said on the House Appropriations Committee that the legislation is a Biden administration effort to protect and rebuild U.S. national capabilities.
The new legislation would also include AI models that utilize some semiconductors, AI systems made specifically for the military or government that could be used for surveillance, hypersonic systems, and additional export-controlled technologies.
