Biden or Administrative Order to Restrict US Investment in "Sensitive Technologies" in China | US | Technology
According to sources cited by Reuters on the 4th local time, US President Biden is expected to issue an executive order early next week to restrict US investment in China involving "sensitive technologies".
This plan has been brewing for several months. The news indicates that the goal of this administrative order is to "prevent US investment and professional knowledge from accelerating China's military modernization technology research and development, which poses a threat to US national security.".
It is expected that the administrative order will target US private equity, venture capital, as well as investments in semiconductors, quantum computing, and artificial intelligence in China. Sources say that most of the investments covered by the executive order will have to notify the US government, and certain investments will be prohibited.
However, the White House spokesperson has not yet commented on this. Former US Department of Commerce official Hull said, "This executive order can patch a loophole in our existing mechanism. We have technology export bans and domestic investment restrictions, which will help bridge the gap between funds and technology and show the government the flow of funds in this area."
The report indicates that the new regulations are not expected to take immediate effect, and the US government will seek opinions on the proposal. The White House has held multiple meetings with stakeholders and consulted with allies.
Two sources predict that the executive order briefing will be held next Monday and an official announcement will be made next Tuesday. However, this administrative order has been postponed multiple times and may be postponed again this time.
During a meeting with Chinese officials in July, US Treasury Secretary Yellen discussed relevant issues. At a briefing after concluding her visit to China, she stated that potential restrictive measures are "highly targeted and clearly directed, with a narrow scope, limited to a few areas where we have specific national security concerns."
The New York Times reported that officials in the Biden administration spent a lot of time weighing the scope of investment restrictions last year, engaging with corporate executives to seek their views on the impact of the restrictions. Industry groups and venture capitalists actively lobbied against a widespread ban on investment in China, claiming that it would disrupt important business relations and ultimately harm the US economy.
Regarding the Biden administration or a series of policies to restrict investment in China, Foreign Ministry spokesperson Mao Ning stated at a regular press conference on July 18 this year 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.