China is considering mounting a response to the latest wave of US sanctions that restrict investments by US venture capital in advanced Chinese artificial intelligence (AI) companies.
Shu Jueting, a spokesman for Beijing’s ministry of commerce said it was working to understand the impact of President Joe Biden’s latest executive order and considering a response, CNBC reported.
“We are making a comprehensive assessment of the executive order’s impact, and will take necessary countermeasures based on the assessment’s results,” Ms Shu said.
The comments come amid an escalating technology-fuelled trade war between the US and China.
Last week, President Biden issued an executive order that placed restrictions on venture capital investments in Chinese AI companies, quantum computing and cyber security, warning Beijing-backed businesses could turn their technology to military use.
The White House said China’s advancements in AI represented an “acute national security threat because of their potential to significantly advance the military, intelligence, surveillance, or cyber-enabled capabilities”.
While the US measures will hurt some start-ups, American investment into China has collapsed since the pandemic amid escalating tensions. US venture capital investment in China has fallen from $32.9bn in 2021 to just $9.7bn last year, according to Pitchbook data, while just $1.2bn in funding has been agreed this year.
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