Joe Biden bans US investment in Chinese tech sector
US President Joe Biden has signed an executive order restricting American investments in Chinese entities. The order restricts American investments in three sectors, including semiconductors and microelectronics, quantum information technologies, and specific AI systems. This move aims to prevent China develop technologies that could aid its military modernization and compromise US national security. It targets private equity, venture capital, joint ventures, and greenfield investments.
China condemns the US order restricting investment
China expressed its concern over the order, stating it disrupts normal business operations and undermines the international economic and trade order. The Chinese Commerce Ministry urged the US to respect market economy laws and fair competition principles, avoid hindering global economic and trade cooperation or create "obstacles for the recovery of the world economy." The Chinese embassy in Washington also expressed its disappointment.
The order focuses on future investments
The regulations will only impact future investments, not existing ones. However, the US Treasury may request disclosure of prior transactions. Biden consulted allies on the plan and incorporated feedback from the Group of Seven (G7) countries. The order is expected to take effect next year. It will affect American investments in China, which have already slowed down due to tensions between the two nations.
