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US government review threatens to block firms’ Artificial Intelligence work with China

Collaboration between businesses could be put at risk by scrutiny from White House and Congress

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American firms often collaborate with their Chinese customers on AI projects. Photo: Alamy

The US government may start scrutinising informal partnerships between American and Chinese companies in the field of artificial intelligence, threatening practices that have long been considered commonplace for technology companies, sources familiar with the discussions said.

So far, US government reviews for national security and other concerns have been limited to investment deals and corporate takeovers. 

This possible new expansion of the mandate – which would serve as a stop-gap measure until Congress imposes tighter restrictions on Chinese investments – is being pushed by members of Congress, and members of Donald Trump’s administration who worry about theft of intellectual property and technology transfer to China, four people familiar with the matter told Reuters.

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Artificial intelligence, in which machines imitate intelligent human behaviour, is a particular area of interest because of the technology’s potential for military usage, they said. Other areas of interest for such new oversight include semiconductors and autonomous vehicles, they added.

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These considerations are in early stages, so it remains unclear if they will move forward, and which informal corporate relationships this new initiative would scrutinise.

Any broad effort to sever relationships between Chinese and American tech companies – even temporarily – could have dramatic effects across the industry. 

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