The United States tightens rules on China investment in some tech sectors
The U.S. Treasury Department issued new rules on Friday aimed at blocking investment in Chinese companies in sensitive technology sectors, a move that expands the scope of the U.S.-China conflict from trade to investment.
The rules bar investment in a list of companies that was previously banned for U.S. government employees, including telecommunications equipment maker Huawei. They were seen to be involved in helping the Chinese government’s military. Investment in Chinese companies that make small surveillance cameras is also prohibited.
The new rules come as the Trump administration works to limit China’s ability to obtain sensitive American technology. The U.S. has already imposed a ban on exports to Huawei, one of China’s most prominent firms.
The new regulations could put a damper on things like artificial intelligence and semiconductor companies in China, limiting their ability to attract U.S. investment. China has been working to become a world leader in AI and is a big investor in U.S. tech companies.