US seeks to curb funding in Chinese language chips, AI and quantum computing

© Reuters. FILE PHOTO: U.S. and Chinese language flags are considered by damaged glass on this illustration taken, January 30, 2023. REUTERS/Dado Ruvic/Illustration/File Characterize

By Karen Freifeld

WASHINGTON (Reuters) – Novel principles beneath consideration would prohibit the waft of U.S. investments and technology into Chinese language firms engaged on developed semiconductors, artificial intelligence and quantum computing, a U.S. Treasury respectable said on Wednesday.

Speaking sooner than a Senate Banking Committee hearing, Paul Rosen, who oversees funding security at Treasury, said officers are engaged on curbing funding from the U.S. that “comes with technology and expertise to certain explicit sectors and subsectors equivalent to developed semiconductors, artificial intelligence and quantum computing,” citing China and its militia in explicit.

Reuters reported in February that the Biden administration plans to ban investments in some Chinese language technology firms and extend scrutiny of others, three sources said, as part of its notion to crack down on the billions that American firms have poured into sensitive Chinese language sectors.

China hawks in Washington blame U.S. merchants for transferring capital and treasured know-the glorious solution to Chinese language tech firms that might possibly well also help reach Beijing’s militia.

Individually, Republican Senator Invoice Hagerty asked about efforts to ban the provision of U.S. foundation goods to Chinese language telecommunications company Huawei.

Exports to Huawei for the time being require a license. Requested about revoking these licenses, Commerce Division assistant secretary Thea Rozman Kendler said, “We build no longer have a draft rule at this time,” nevertheless added that “We’re beneath deep evaluation of this inform.”

Officials are carefully scrutinizing a gigantic vary of exports to China and said that closing year they denied or took no motion on a quarter of requests in mutter to conclude sales that might possibly well reach Beijing’s militarization.

In 2022, 5,064 export and re-export license capabilities were reviewed and about 26% were denied or returned with out motion, Kendler said in written testimony sooner than the Senate Banking Committee hearing.