The Wall Street Journal reported on Friday (Mar. 3), citing copies of papers sent to senators on Capitol Hill that were seen by the newspaper, that the Treasury Department is putting together a new program that may forbid US investment in particular sectors of hostile countries.
Although the paper sent to Congress did not name any nations, the Biden administration’s work on the new regulations would in fact mostly deal with US investments in China, according to WSJ.
According to the WSJ, which cited people with knowledge of the situation, the new regulations are anticipated to encompass private equity and venture capital investments in sophisticated semiconductors, supercomputing, and some types of artificial intelligence.
It further stated that the Treasury and Commerce departments planned to finalize their policy soon.
The Biden administration is reportedly proposing an outright prohibition on investments in some Chinese technology businesses and enhanced inspection of others.
Last year, the US passed a comprehensive set of rules intended to hamper China’s semiconductor industry.
