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