The Biden administration on Thursday announced that it will impose new restrictions on American investments in Chinese companies involved in quantum computing, artificial intelligence and semiconductors.
The new restrictions were a central topic of discussion between Treasury Secretary Janet L. Yellen and senior Chinese officials during her four-day trip to China last week, and their imposition could put a damper on diplomatic efforts to pave a détente in frayed bilateral relations.
The Treasury Department has tried to limit the scope of the restrictions, which target private equity and venture capital investments in a few highly strategic sectors.
The department has also tried to assure China that the measures are not intended to damage the Chinese economy and to prevent Beijing from retaliating by restricting U.S. companies’ access to vital rare minerals used in computer chips and electric vehicles.
