China slams planned US tech investment curbs, warns could respond

China on Wednesday condemned curbs finalised this week by the United State on investment in sensitive technology, adding that it "reserves the right" to take its own measures.

The new rules announced by the Treasury on Monday will prohibit US-headquartered firms, citizens, and permanent residents from engaging in transactions involving cutting-edge technology with China.

Stemming from an executive order signed last August by US President Joe Biden, the restrictions will take effect on January 2, targeting investments in the fields of semiconductors, artificial intelligence (AI) and quantum computing.

"China firmly opposes the United States issuing final rules on investment restrictions on China and has lodged stern representations with the United States," a spokesperson for Beijing's commerce ministry said in a statement on Wednesday.

"The United States has generalised the concept of national security," the statement said, calling the restrictions a "typical non-market practice".

The rules will "damage the interests" of firms in both China and the United States, the statement warned.

China "reserves the right to take measures", it added.

The world's two largest economies are locked in a contest for supremacy in advanced technology as relations between Washington and Beijing strain under a wide range of fraught economic and geopolitical disputes.

The areas targeted by the latest US curbs "are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications", Treasury assistant secretary for investment security Paul Rosen said in a statement on Monday.

Investors will also be required under the rules to inform authorities about investments in some less advanced technologies that could threaten US national security, the Treasury said.