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Sorry, you can’t invest in China’s tech industry

Last updated on March 12, 2023

The Biden administration is developing a new program to restrict U.S. investment in certain sectors in China, with a focus on advanced technologies that could pose national security risks. The program may prohibit some investments and collect information about others to inform future steps. While specific technology sectors were not identified, the program is expected to cover private-equity and venture-capital investments in advanced semiconductors, quantum computing, and some forms of artificial intelligence. The goal is to prevent American investors from funding Chinese companies that could improve Beijing’s military capabilities. The U.S. is also seeking support from its allies to restrict investment in China. Venture-capital firm Sequoia Capital has already begun screening new investments in Chinese semiconductor or quantum-computing companies in anticipation of the new rules.

Complex Terms:

  • Semiconductors – An essential part of an electronic device
  • Quantum computing – emerging technology that uses quantum mechanics to solve complex problems

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