The US Congress is discussing the broader ban on investments in Chinese high-tech companies dealing with cyber security and artificial intelligence (AI). 

Citing Michael McCaul, a Republican lawmaker and the House Foreign Affairs Chair, the White House intends to impose a complete blockade on all US investments in the AI area of the Chinese economy. Previously, Congress has already passed relevant executive orders. 

Biden’s administration “is talking about a theory where they would stop capital flows into sectors of the economy like AI, quantum, cyber, 5G, and, of course, advanced semiconductors — all those things,” McCaul prefaced the looming announcement. 

The Congressman obtained this information from other lawmakers and some veterans of national security agencies. The White House will cut off the capital flow into China’s high-tech industries. From now on, American entrepreneurs will be prohibited from allocating their funds to any firm involved in cyber security, thus preventing China’s technological and military advancement, McCaul pointed out. 

The administration underscores the importance of the pending sanctions on China’s high-tech firms because they are prone to developing dual-purpose technologies. 

The new version of the legislative order comes as a result of painstaking debates on Capitol Hill for a few years. Eventually, lawmakers crafted the bill aimed against investments in China’s high technologies with a focus on safeguarding US national security. Nevertheless, more actions may follow to stem investments in a broader scope of relevant industries. 

In August 2022, President Joe Biden signed the landmark bill on subsidies worth $52.7 billion for domestic companies. This package is intended to support semiconductors production as well as research in the national high-tech sector. This lavish financial aid will ensure US competitive advantage in the global market.