The US Treasury has issued a rule aimed at blocking American investors from providing financial support to China’s development of advanced military technology. The new rule is part of ongoing efforts to curb China’s military aggression and protect American national security interests.
Under the rule, US investors are prohibited from investing in Chinese companies that are involved in the production of technology deemed critical to China’s military capabilities. This includes companies that are involved in activities such as research, development, production, or testing of advanced weapons systems, as well as firms that support China’s military modernization efforts.
The Treasury Department stated that the rule is necessary to address the threat posed by China’s growing military power, which has been fueled by investments from US investors. The rule is also meant to prevent the transfer of sensitive technology to China, which could be used to bolster its military capabilities and pose a threat to the United States and its allies.
The move is part of broader efforts by the US government to counter China’s military expansion and ensure that American investors do not inadvertently contribute to China’s military buildup. The rule is likely to have a significant impact on US investors who have previously been involved in funding Chinese companies working on military technology.
Overall, the Treasury’s new rule underscores the increasing tensions between the US and China over security and military issues. It also highlights the importance of strong regulatory measures to protect American national security interests and prevent the transfer of critical technology to potential adversaries.
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