WSJ: US prepares new rules on investment in advanced technologies abroad

The Biden administration is preparing a new program that could prohibit US investment in advanced technologies abroad.

In reports provided to lawmakers Friday on Capitol Hill, the Treasury and Commerce departments said they were considering a new regulatory system to address US investment in advanced technologies abroad that could pose national security risks, according to copies of the reports viewed by The Wall Street Journal.

The reports said the Biden administration may prohibit some investments while also potentially collecting information about other investments to inform future steps.

While the reports didn’t identify specific technology sectors the Biden administration views as risky, it said sectors that could advance rivals’ military capabilities would be a focus of the program.

People familiar with the work on the new program expect it to cover private-equity and venture-capital investments in advanced semiconductors, quantum computing and some forms of artificial intelligence. US officials want to prevent American investors from providing funding and expertise to Chinese companies that could improve the speed and accuracy of Beijing’s military decisions, for example.