The U.S. authorities intend to limit resident investment in foreign high-tech companies

The U.S. authorities intend to limit resident investment in foreign high-tech companies

Recently approved by the President of the United States, the National Semiconductor Act does not take into account the threats posed by investments in foreign companies specializing in the relevant fields, as some US officials believe. In the next quarter, US legislators may establish separate rules to control such investments.

It is understood, as Reuters explains, that a number of U.S. agencies will have the authority to control investments by residents in foreign companies working in the field of semiconductors, artificial intelligence systems, and quantum computing, otherwise foreign companies will have an unfair advantage, while U.S. authorities will have to spend their budgets to subsidize their own high-tech industry.

In the area of special attention, China will be highly predictable. American officials intend to prevent the financing of foreign industries that are key to the national economy. A decree can be issued in the next quarter to complement the measures already outlined in the core package of laws. It will be recalled that US-subsidized companies are prohibited for 10 years from expanding their production capacity in China using 28 nm and more advanced lithographic technologies. The task for legislators is to propose selective restrictions on investment by American companies in the same Chinese semi-conductor component developers. The relevant prohibitions will not duplicate or hinder the development of cooperation with those countries that share the U.S. foreign policy; the availability of sufficient resources to control such activities will also have to be considered by U.S. supervisory authorities. Those areas that will not be considered strategic by the U.S. authorities for national security will not be subject to control; in the rest, residents will be able to invest even Chinese companies in capital.