China US

Chinese experts on Tuesday slammed US proposals to restrict investment in artificial intelligence (AI), semiconductors and other technologies in China, saying the proposed measures are just the latest example of the intensifying US campaign to contain China's development. 

Such measures will further undermine normal cooperation between Chinese and US businesses, and run counter to market economy principles, and they could even slow down global advances in the critical technologies, the experts said. 

The proposed rules, which target US outbound investment to China in AI, semiconductors and microelectronics, and quantum computing, are under review, Reuters reported on Monday, citing a US government update, which in the past has meant they will likely be released within the next week or so.

Under the proposed rules, US investors are required to notify the US Treasury Department about some investments in AI and other sensitive technologies. The US Treasury Department in June published proposed rules with a raft of exceptions and gave the public a chance to comment. The draft rules placed the responsibility on US individuals and companies to determine which transactions will be restricted, according to the Reuters report.

"China and the US are the leaders in terms of AI development, and companies of the two countries have maintained cooperation in certain areas, which is conducive to the development and adoption of AI. However, US politicians' discriminatory restrictions will undermine such cooperation and the global development of AI and other technologies," Li Yong, a senior research fellow at the China Association of International Trade, told the Global Times on Tuesday.

Li noted that the proposed US measures are politically motivated and aimed at preserving the technology hegemony of the US by cracking down on China's development in AI and other critical technologies. However, such restrictions will not help the US maintain its technology hegemony because innovation requires openness and cooperation, the expert said. 

Meanwhile, Chinese companies are making great progresses in AI and other technologies. The number of AI enterprises has exceeded 4,500, and more than 200 generative AI service large-language models have been registered and launched to provide services to the public, serving more than 600 million users, according to the Ministry of Industry and Information Technology.

In addition to fast development in technologies and products, China also has a massive market for the adoption of various AI and other high-tech products and services, which is also crucial for the advancement of technologies, experts said, adding that the restrictions on normal cooperation will prevent US firms from taking advantage of the Chinese market. 

Bai Ming, a research fellow at the Chinese Academy of International Trade and Economic Cooperation, said that the restrictions are not conducive to the global development of AI and other technologies, but they will not stop China's development. 

"We have seen the US has imposed restrictions in so many areas. So I don't think relevant industries in China have been completely caught off guard by the new restrictions," Bai told the Global Times on Tuesday, noting that China will focus on its own innovation in core technologies.