And unwilling to offend American investors... The White House will issue a ban and restriction on China, attempting to curb China's cutting-edge industrial development technology | China | the United States
Both attempting to curb the development of China's cutting-edge industries and unwilling to offend American investors
According to foreign media reports, a senior US government source revealed on the 8th that the White House will announce details on the 9th local time prohibiting US companies from investing in sensitive technologies in certain advanced industries in China.
The report states that this executive order has been brewing for over a year and is another measure by the Biden administration to restrict "China's access to American technology and funding.". The US has previously claimed that this move is necessary to "protect national security".
Screenshot of the report
It is reported that this is one of the first important measures taken by the United States in its economic competition with China, which will prohibit private equity and venture capital companies from investing in certain high-tech fields, such as quantum computing, artificial intelligence, and advanced semiconductors. The aim is to "prevent US capital and expertise from helping develop technologies that may support China's military modernization and threaten US national security," and to curb capital outflows.
Sources say that most of the investments involved in the order require notification to the government, and certain transactions will be prohibited.
The US Consumer News and Business Channel stated that Biden's executive order is not expected to take immediate effect and industry feedback will be considered before it is finally finalized.
The Governor of Chang'an Street noticed that officials in the Biden administration have been insisting for several months that any restrictions on US investment in China are "targeted" and have no intention of expanding the scope of the crackdown. It may sound polite, but in reality, it is both an attempt to curb the development of China's cutting-edge industries and a unwillingness to offend US investors.
US government officials emphasize that direct restrictions on investment only apply to industries that may pose a threat to US national security and will not interfere with legitimate commercial exchanges between the two countries.
US Secretary of Commerce Gina Raymond stated in March this year that the US government "does not want the restrictions to be too broad, as they could harm the interests and economy of American workers.".
However, Reuters reported that the restriction also requires US companies to report to the US government when investing in other areas of China, in order for the government to better understand financial exchanges between the US and China.
At present, the White House has refused to comment on this report.
Reuters reported on the 4th that it is expected that this administrative order will be officially announced in the near future, but it has been postponed several times before, and the possibility of another extension cannot be ruled out.
The New York Times previously reported that officials in the Biden administration spent a long time weighing the scope of investment restrictions implemented last year and solicited opinions from relevant corporate executives on the restrictions. At the same time, industry groups and venture capitalists actively lobbied against a widespread ban on investment in China, fearing that this would disrupt commercial relations and ultimately harm the US economy.
Regarding the Biden administration or a series of policies to restrict investment in China, Chinese Foreign Ministry spokesperson Mao Ning stated at a regular press conference on July 18th that China has always opposed the US politicizing and weaponizing economic, trade and technological issues. We believe that artificially setting obstacles to normal technological cooperation and economic and trade exchanges violates market economy principles, disrupts global supply chain stability, and is not in the interest of either party. We hope that the US side will implement President Biden's promise of no intention of decoupling from China, obstructing China's economic development, or containment of China, and create a favorable environment for Sino US economic and trade cooperation.