Trump signs law blocking US money from boosting Chinese tech

Business Dec 19, 2025

President Joe Biden signed a defense bill that puts new limits on US investments in Chinese tech.
The law, passed by Congress this month, specifically targets sectors like AI, quantum computing, semiconductors, and advanced manufacturing—especially if the tech could be used for military or surveillance.

Why does it matter?

This move is all about stopping US dollars from helping China advance its military-tech edge. It also tightens rules on federal contracts with certain Chinese suppliers.
Lawmakers say it's meant to keep sensitive innovations out of the wrong hands and protect national security as investment flows between the US and China keep dropping.