US Outbound Investment Screening Programme Targeting Investments in Chinese Tech Companies
US Outbound Investment Screening Programme Targeting Investments in Chinese Tech Companies
Key points
- The United States has issued new proposed rules governing US investments
in technological firms in the People’s Republic of China specifically
focused on artificial intelligence, quantum computing and semiconductors. - The measures are fairly limited in scope and are unlikely to have a major
effect on the Chinese technological landscape, especially considering
the withdrawal of US investors from Chinese technology firms due to
geopolitical tension in recent years. - The final rules have not yet been published, but the proposed rules provide
insight into Washington’s strategy and approach. - While the rules are more significant and restricting than the limited
regulations some had originally recommended, they also feature measures
that seem to be designed to further investigate the technological
entrepreneurial landscape in China that could in turn set the stage for
further expansions of outbound investment screening. - The measure comes amid an expanding technological export restriction
regime being imposed by the United States and many of its allies on
China that seeks to maintain a technological edge for both economic and
military purposes.
Ali Ahmadi is an Executive-in-Residence within the Global Fellowship Initiative of the GCSP. He is a scholar of economic statecraft and sanctions policy. He studies the intersection of national security and global economic affairs and the growing use of sanctions in the context of world politics. He currently works with think tanks and institutions around the world on sanctions and geoeconomic-related issues including Gulf State Analytics in Washington and Vocal Europe in Brussels. His scholarly work on these issues has been published by publications around the world. He has also been interviewed as an expert on these issues by various media outlets. He has a Master’s degree from the University of Tehran and a Bachelor's degree from the City University of New York.
Disclaimer: The views, information and opinions expressed in this publication are the author’s own and do not necessarily reflect those of the GCSP or the members of its Foundation Council. The GCSP is not responsible for the accuracy of the information.