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US-China tech war
TechPolicy

US weighs more China tech restrictions, targeting quantum computing and artificial intelligence

  • The Biden administration is exploring new export controls that would include investment in nascent quantum computing and artificial intelligence technologies
  • Quantum computing is an experimental field with the potential to upend computer security by circumventing traditional encryption

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US President Joe Biden looks at the IBM System One quantum computer with New York Governor Kathy Hochul during a tour of an IBM facility in Poughkeepsie, New York, on October 6, 2022. Photo: AP
Bloomberg

The Biden administration is exploring the possibility of new export controls that would limit China’s access to some of the most powerful emerging computing technologies, according to people familiar with the situation.

The potential plans, which are in an early stage, are focused on the still-experimental field of quantum computing, as well as artificial intelligence software, according to the people, who asked not to be named discussing private deliberations. Industry experts are weighing in on how to set the parameters of the restrictions on this nascent technology, they said.
The efforts, if implemented, would follow separate restrictions announced earlier this month aimed at stunting Beijing’s ability to deploy cutting-edge semiconductors in weapons and surveillance systems.

Technology stocks in China fell on Friday, with equipment-makers Naura Technology Group Co and ACM Research Shanghai Inc tumbling as much as 6.1 per cent and 8.7 per cent respectively. Piotech Inc dropped as much as 13 per cent.

The US has ramped up actions to stifle China’s ability to develop certain technologies that it sees as key in the competition with its top strategic rival. The sweeping regulations released earlier this month also limited how US citizens and residents participate in Chinese tech firms.

The Commerce Department’s Bureau of Industry and Security, which plays a key role in designing and enforcing export controls and announced the semiconductor restrictions on October 7, declined to comment. The White House National Security Council isn’t aware of discussions on such additional controls, according to a spokesperson.

National Security Advisor Jake Sullivan, in a speech last month on technology, competitiveness and national security, referred to “computing-related technologies, including microelectronics, quantum information systems and artificial intelligence” as among developments “set to play an outsized importance over the coming decade”. He also noted the importance of export controls to “maintain as large of a lead as possible” over adversaries.

Expanding the wall around advanced technologies risks further antagonising China and forcing other countries to pick sides between the world’s two top economies. The new ideas have been shared with US allies, according to the people.

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