Chinese tech companies: US wants to ban certain investments

As early as 2021, a U.

Chinese tech companies: US wants to ban certain investments

As early as 2021, a U.S. national security adviser is warning that funds poured into Chinese technology will harm national security. The US government is now planning to ban such investments, but first wants to hear the industry's point of view. China responds.

The US government plans to ban investments in some Chinese tech companies for security reasons and to put more scrutiny on others, according to three people familiar with the matter. The ban applies to some financial flows related to chip production, two of the sources said. These include the export of American chips for artificial intelligence (AI), machines for chip production and supercomputers.

The Biden administration will give industry an opportunity to comment on the proposed rules before the order goes into effect, a source said. The plan is expected to be published in the coming months. A report by Georgetown University earlier this month found that US companies, including chipmakers Intel Corp and Qualcomm Inc, directed nearly a fifth of their spending to Chinese AI companies between 2015 and 2021 - transactions worth 40, 2 billion dollars.

A national security adviser in 2021 pointed to the problem that US money poured into Chinese technology could harm national security and undermine export controls. "No restriction or repression can slow the pace of China's scientific and technological development," a spokesman for the Chinese embassy in Washington said in a statement. "US politicians' unwarranted restrictions on normal Sino-US trade and economic cooperation only result in missed development opportunities." The White House declined to comment.