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U.S. Considers Restrictions on Investment in Chinese AI Firms Over National Security Concerns

U.S. Considers Restrictions on Investment in Chinese AI Firms Over National Security Concerns
Photo by Yan Ke / Unsplash
  • New restrictions considered for U.S. investments in Chinese firms working with AI and sensitive technologies.
  • Biden administration weighs "CFIUS in reverse" to apply to outbound U.S. investment in adversarial countries.
  • Proposed rule targeting Chinese firms with sensitive technologies could be released this spring.
  • Concerns over U.S. technology aiding Chinese military modernization, human rights violations, and first-mover AI advantage.
  • Chinese AI firms received $110 billion in investment between 2015-2021; 17% from U.S. investors.
  • Coordination with allies needed to address backfilling and share information on concerning transactions.
  • CSET report recommends identifying policy objectives, devising a pilot program, expanding the list of Chinese companies linked to PRC military-industrial complex, and creating a mechanism to prevent U.S. investment into companies on the Commerce Department's Entity List.