btw, you know my suspicions
to add to my suspicions, me thunk that in the case of quantum, AI, and everything else, meaning EVERYTHING ELSE, Team China progress shall add to / accrete to industrial capabilities and capacities, on top of R&D, just as in the case of 5G going to 5.5, 6.0 ... 9G in higher-speed / lower-latency quantum-enabled remote surgery and such, whereas same USA developments, unless and until engaging with Team China, would just and only ad to the dimension of Team USA consumption bubble. Just a guess.
In such overarching macro environment, the more Team USA struggles to ... well ... keep up ... the higher goes Gold, because Team USA response is actually only and can only be print print print, printing that which is used to GetMoreGold and little else except a bigger bubble, and such bubble be in the category where only shooters and holders of gold care about and few others do
That is the new-new gold standard, where Team China GetsMoreGold, and Team USA tries to PrintMoreGold, and across the planet, net net, on balance, everything else per the Trump's latest intonement, should SOLVE ALL PROBLEMS OF THIS PLANET
In the meantime, about one of my many suspicions ...
scmp.com
US restrictions on outbound investments to China scrapped from temporary spending bill
- Earlier version had included provisions on overseas transactions involving China in sectors like chips, quantum technology and AI
Bochen Hanin Washington
Published: 5:12am, 20 Dec 2024Updated: 10:26am, 20 Dec 2024
Provisions restricting US outbound investments to China have been scrapped from a temporary spending bill negotiated on Thursday to avert a government shutdown, likely setting the stage for renewed debates on the topic next year in the new Congress.
An earlier version of the spending bill, which would keep the US government funded until mid-March, had included provisions that would prohibit or require notification of overseas transactions involving China in sectors like semiconductors, quantum technology and artificial intelligence.
That version also had several other provisions aimed at concerns about China, including expanded review of Chinese real estate purchases near national security-sensitive sites and a requirement to study national security risks posed by Chinese-made consumer modems and routers.
All China-related provisions were removed in the text released on Thursday, which spans just 116 pages and is significantly shorter than the 1,547-page bill unveiled on Tuesday night.
The earlier version was initially expected to be voted on this week before the shutdown deadline on Friday, but was discarded by Republicans after opposition from president-elect Donald Trump on Wednesday.
US president-elect Donald Trump speaks at Mar-a-Lago in Palm Beach, Florida, on Monday. Photo: Reuters
Trump had criticised the version for being “extraordinarily expensive” and said he would not support any package that does not suspend or abolish the federal borrowing limit.
House Speaker Mike Johnson brought the shortened bill, which suspends the debt limit until 2027, to a floor vote on Thursday night, where it failed. No additional votes are expected on Thursday.
The inclusion of restrictions on outbound investment had culminated a year-long battle between pro-business lawmakers, who argue that excessive regulation could disadvantage US industry against foreign competitors, and national security-focused lawmakers eager to cut the flow of American capital and expertise to China’s military.
The outbound restrictions largely aligned with finalised US Treasury Department rules slated to come into effect on January 2.
“There are some minor differences around the edges that will need to be reconciled,” said Christian Davis of Washington-based law firm Akin Gump, speaking before it became clear that the outbound provisions would be dropped.
A notable difference, Davis said, is a “non-exhaustive list of covered foreign persons” that the Treasury rules do not include, which could be helpful for investors trying to identify companies.
The bill also provided up to US$150 million in funding for the Treasury and Commerce departments to carry out the programme.
In terms of covered sectors, they remain largely the same, with the bill including some “more direct discussion” of military applications of the sectors, Davis added.
But analysts say the primary significance of having outbound restrictions codified is to ensure the executive branch cannot alter them later.
On Tuesday, Craig Singleton of the Washington-based Foundation for Defence of Democracies called the bill a “game-changer” because it “codifies critical measures, ensuring future administrations can’t weaken these protections”.
Davis said the legislation reflected a compromise, as there have been some efforts to include restrictions on publicly traded securities, which are among the exempted asset types.
But he said, regardless of what happens this year, more restrictions could come during the next Congress, which starts in January. “There’s a lot of people that want to do a lot more.”
Similar to the bill, the Treasury rules focus on equity investments, though some debt financing as well as brownfield, greenfield and joint venture-related investments will also be covered.
The rules primarily apply to private equity and venture capital funds with a US general partner, and covers certain majority-owned Chinese companies and parents of Chinese companies in third countries, in addition to investment on the mainland, Hong Kong and Macau.
Positive reactions to the inclusion of the outbound provisions came swiftly from members of both parties on Tuesday.
In a press release, Senate Democratic leader Chuck Schumer said he was “particularly proud” that the bill included “new restrictions on US investment in the CCP’s development of critical technology like AI and chips”.
The restrictions had also been poised to be added to the annual “must-pass” national defence authorisation act, but were scrapped at the last minute, reportedly by House Democratic leader Hakeem Jeffries. |
