An AI startup called Anthropic is selling an $1 billion stake. Investors, especially wealthy nations, are eager to buy in, but Anthropic has rejected Saudi Arabian money due to national security concerns. The startup's technology has potential dual-use applications, which has raised alarms about the potential misuse of the technology by hostile nations.
Congress is increasing its scrutiny of U.S. investments in China, with bipartisan support for restricting funds flowing to companies with alleged military or security ties. Some proposals aim to ban investments in certain advanced technology sectors to prevent China from leveraging American capital for its military development. While it's difficult to pass sweeping restrictions, the issue is gaining attention, with initiatives focusing on transparency and accountability to ensure investments do not contribute to China's potential military advancements.
China has expanded its national security measures by categorizing unclassified information as "work secrets," giving government departments broad authority to limit public access. This raises concerns about information transparency and individual liability. Additionally, the law restricts overseas travel for those handling state or work secrets, increasing uncertainty and risk for foreign businesses operating in China. The impact of this revised law on foreign investment and civil liberties remains to be determined.
