Abusing 'national security' serves no one: China Daily editorial

The latest proposed outbound investment rules released by the US Department of the Treasury on Thursday for public comment are highly discriminatory. Broadening the scope of investment restrictions, they represent an abuse of "national security" to target specific countries, including China.

If implemented, the restrictions on US investments in Chinese companies in the artificial intelligence, supercomputing, biotechnology and other advanced sectors, will disrupt normal economic and trade cooperation between Chinese and US enterprises, and undermine the international economic and trade order, as a spokesperson for China's Ministry of Commerce said.

The proposed rules overstretch the concept of "national security" and use it as a pretext. They would prevent US capital, business expertise and commercial connections from being involved in activities that the US government deems support certain technologies that could enhance the military, intelligence and surveillance capabilities of "foreign adversaries".

The expansion of investment restrictions, if adopted, will mark another escalation in the US crackdown on China's high-tech sector. By targeting not only semiconductors but also biotechnology and broader AI capabilities, the US seeks to "decouple" critical technology from China. The ministry spokesperson stressed that the proposed rules run counter to the important consensus reached by the two heads of state. These measures will not only impede normal investment and technological cooperation between the two sides but also harm the mutually beneficial economic and trade relations between China and the US.

China will closely follow further developments and reserves the right to take corresponding measures, the spokesperson said.

By weaponizing investment policies and setting up discriminatory barriers targeting specific countries, the US is violating the open international investment order and disrupting global industry and supply chains.

Investing in China is investing in the future as the country boasts immense consumption and investment potential with its superlarge market. Therefore, US restrictions on investment in China will unavoidably hurt the interests of US companies.

The US side should respect market economy principles, stop overstretching the concept of "national security", stop politicizing and weaponizing economic and trade issues, and create a sound environment for bilateral economic and trade cooperation.

As front-runners in some high-tech fields such as AI and biotech, China and the US should work together to advance the sound development and governance of these emerging technologies, so that these innovations can deliver real benefits to all people and foster shared prosperity. Unilateral restrictive measures and protectionist practices go against the trend of the times, and run counter to the due responsibility of major countries.

As Chinese Foreign Minister Wang Yi said during his meeting with the cochair of the Board of Trustees of the Asia Society, John Thornton, and The New York Times columnist Thomas Friedman in Xiong'an, Hebei province, on Friday, China and the US have both the capability and the responsibility to jointly develop and govern AI well, ensuring that its development remains under human control and benefits the world.

Notably, underscoring the Cold War mentality behind the Treasury's proposed rules, the Pentagon announced its decision to add Confucius Institutes to its list of "national security threats" on Friday. Baselessly describing Chinese language classrooms as existential "threats" shows how far some in Washington are willing to go to politicize normal cultural exchanges. By feeding McCarthyist suspicion and smearing cultural communication, some US politicians are making genuine cooperation and exchanges harder.

The latest actions by the Treasury and the Pentagon came at a time when both China and the US are working to stabilize economic relations and promote exchanges. The impact they would have is self-evident: they risk undermining the current momentum toward stability in bilateral relations and China's trust in the US' stated willingness to stabilize ties.

The development of Sino-US ties these years clearly indicates that the right way forward lies in dialogue, coordination and win-win cooperation. Only by managing differences properly and keeping communication channels open can the two countries unlock the positive potential of technology for the good of humanity and continually deepen mutual understanding through exchanges.