The United States is preparing to increase its scrutiny of China's investment in Silicon Valley companies to better protect sensitive technologies that are critical to US national security, the US current and former officials said.
Reuters article pointed out that the United States and former officials are very concerned about China in the field of artificial intelligence and machine learning and other areas of interest. These industries in recent years, more and more interest in China's capital investment. They fear that cutting edge technology developed by the United States may be used by China to improve its military capabilities and perhaps advance in strategic industries.
The US government is considering strengthening the role of the US Foreign Investment Review Committee (CFIUS). The committee is responsible for reviewing foreign acquisitions of US companies from a national security perspective.
Reuters saw an unpublished Pentagon report warned that China is avoiding the US review, through the current does not lead to CFIUS review of the transaction to master sensitive technology. Such transactions will include joint ventures, minority holdings, and early investments in start-ups.
US Defense Secretary James Mattis joined the controversy on Tuesday, claiming that CFIUS was outdated and told the Senate hearing that it needed to be updated to respond to the current situation. & Rdquo;
Senator John Cornyn, a Republican leader of the Senate, said Cornyn is currently drafting laws to give CFIUS more powerful power to stop investing in some of the technology.
"Artificial intelligence is one of the many advanced technologies that China intends to seek, and has potential military use," said the Cornyn assistant, who declined to be named.
"At present, these technologies are very novel, and our export control system has not yet thought about how to protect them, which is part of the reason why these technologies are out of the existing protection system," said the assistant.
"The Chinese have bypassed our precautions for the transfer of technology in foreign investment and used these technologies to transcend us economically and militarily," said James Lewis, military technology expert at Center for Security and International Studies.
However, some industry experts warned that the United States to strengthen supervision may not be able to prevent the transfer of technology, but also lead to China's counter, the US economy has a negative impact.