The US president bans some US investments in sensitive technologies in China
The US President Joe Biden signed on Wednesday an executive order that will ban some new US investments in China in sensitive technologies such as computer chips, and impose requirements that the government notify the government if investing in other technology sectors.
The long-anticipated order would give the US Treasury secretary the authority to ban or impose restrictions on US investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.
The order intended to prevent US capital and expertise from helping China develop technologies that could support its military modernization and undermine US national security.
This measure targets private equity, venture capital, joint ventures, and pumping investments to establish affiliated local units.
In turn, Beijing announced Thursday that the new US measures to restrict investment in Chinese technology severely disrupt the security of global supply chains.
The Chinese Ministry of Commerce, said in statement that US President Joe Biden’s executive order in this regard seriously deviates from the market economy and the principles of fair competition that the United States has long promoted as well as harms the international trade system and severely disrupts the security of global manufacturing and supply chains”.
“China expresses serious concern about this and reserves the right to take measures,” the statement added.
The restrictions, which expected to take effect next year, come as the Biden administration seeks to strengthen its stance toward China militarily, economically and technologically.
A spokesman for the Chinese Ministry of Commerce said that his country hopes that the United States will avoid artificially impeding global economic and trade exchange and cooperation, and also put obstacles to the recovery of the global economy.
