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China's trade council has urged the US to reconsider recent rules restricting American investments in China's tech sector. These rules, signed by President Joe Biden, target Chinese entities in semiconductors, microelectronics, quantum tech, and AI. The Chinese council argues that the restrictions are vague and lack differentiation between military and civilian applications.
Consequently, they warn of transaction risks, compliance costs, and disruptions to the global industrial chain. US financial firms also seek clarity, as they believe the rules burden investors. These rules are set to be implemented next year, with a deadline for US financial firms to provide input by 28 September.
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