The decision, which comes into effect on January 2, prohibits investment in three key sectors of the Chinese economy: semiconductors and microelectronics, quantum information and artificial intelligence.
“The Biden-Harris administration is committed to protecting America’s national security and keeping advanced strategic technologies out of the hands of those who would use them to threaten our national security,” said Under Secretary of the Treasury Paul Rosen in a statement.
“Artificial intelligence, semiconductors and quantum technologies are critical to the development of next-generation military, surveillance, intelligence and certain cybersecurity applications,” he added.
As an example, Rosen warned that these technologies could be used in advanced computer systems for codebreaking or next-generation combat aircraft.
The US already prohibits exports to China of technologies related to these three sectors, so the measure announced today represents another step in the strategy of isolating the Chinese technology sector from the US.
The move is in response to national security concerns, particularly to prevent China from using advanced US technological advances to modernise its military.
Chinese President Xi Jinping has set a target for the country to make significant progress in the social, economic and military spheres by 2035, including strengthening the military’s maritime capabilities, which could pose a threat to Taiwan, a US ally.
*With Lusa