US Commerce Secretary: "Investment Restrictions on Chinese Advanced Technology Companies to Be Finalized Within the Year"

U.S. Secretary of Commerce Gina Raimondo stated on the 8th (local time) that investment regulation rules on China will be finalized within this year.

[Image source=Yonhap News]

At a House Ways and Means Subcommittee hearing that day, Secretary Raimondo said, "We must overwhelm China in the competition with them," adding, "We are taking all necessary measures to prevent China from acquiring advanced technology." Regarding U.S. capital investment regulations on Chinese advanced companies, she stated, "The Treasury Department is leading this effort, and to my knowledge, the regulations are expected to be completed within this year."

Secretary Raimondo explained, "What we are closely monitoring are dual-use technologies that can be used commercially but also have military applications," and added, "It is not easy to identify which commercial technologies held by U.S. companies are not possessed by China but are being sought for military technology development."

She emphasized, "The goal is to protect technologies that the U.S. possesses but China cannot access, and for this, we are cooperating with allies such as Japan and the Netherlands." However, she noted, "We are not trying to cut off all transactions with China, nor halt all tech trade with China," stressing, "We will continue all kinds of exports to China, including semiconductors, which is beneficial to the U.S. economy."

Secretary Raimondo added, "We regulate nearly 700 dual-use items for Russia, and currently, over 100 Chinese companies are also on the export control list." She further stated, "During my tenure, we have placed more Chinese companies on the sanctions list than any previous administration," and "Last year, we recorded the highest number of export control enforcement cases ever."

Regarding the cancellation of Huawei export licenses for U.S. semiconductor companies such as Intel and Qualcomm, she said, "Huawei is a threat and is focused on artificial intelligence (AI)," adding, "We will narrow the pressure by canceling previously granted licenses as we gain more information about the threat."