The US is considering boosting the review of Chinese investments in Silicon Valley to protect technologies regarded as vital to national security. Concern is highest around Chinese interest in areas like artificial intelligence and machine learning, which the US fears could give China the lead in strategic sectors.
An unpublished Pentagon report warns that China is getting around oversight and accessing sensitive tech via moves such as jvs and early-stage investments in start-ups that don't lead to Committee on Foreign Investment in the United States review, according to Reuters.
"The Chinese have found a way around our protections, our safeguards, on technology transfer in foreign investment,” James Lewis, expert on military technology at the Center for Security and International Studies, told the news agency. “And they're using it to pull ahead of us, both economically and militarily.”