The White House still sacrificed its own businesses to curb China's economy and businesses
On August 9th local time, US President Biden signed an executive order strictly restricting US investment in China in the fields of semiconductors, quantum computing, and artificial intelligence. After the embargo and sales ban, the US technology blockade against China has spread to the financial level. However, objective facts and economic laws cannot be changed with just one executive order from the White House?
To suppress China, the economy is no longer needed?
The Biden administration has been debating this executive order internally for nearly two years, resulting in the White House National Security Council and the Department of Defense overwhelming the Treasury and Department of Commerce. The White House has made it clear that this is not an economic act, but a national security action.
After the restriction order was issued, the Semiconductor Industry Association of America immediately spoke out, stating that American chip companies "hope to enter the Chinese market.". The National Venture Capital Association of the United States has also requested the White House to ensure that the executive order "will not have unexpected consequences for investments in American companies.".
Despite the unanimous opposition from domestic economic sectors and businesses, the US government still insists on decoupling and breaking ties with China, becoming a traitor to globalization.
Can the United States manage how money is spent in various countries?
American media believe that this executive order marks the beginning of a new round of financial war between the United States and China. The United States also claims to have conducted close consultations with G7, the European Union, and others in advance, hoping that they will also introduce similar measures.
But how could other countries be willing to take chestnuts out of the fire for the United States if such practices go against economic laws?
When Biden went to Hiroshima, Japan to attend the G7 summit in May, he wanted to pull other countries together to ban investment in China, but there was no response. After another three months of delay, the United States had to set an example and once again call on its allies to follow suit.
Saudi Arabia and the United Arab Emirates have recently stated that in addition to expanding trade, they also need to focus on strengthening investment in China. The United States does not invest in China, some countries are willing to invest.
Can the United States change the trend of economic development?
US technology companies continue to lobby Washington to relax sanctions and continue to go to China to "check in" because the Chinese semiconductor market has the world's largest consumption capacity and development potential, while the US semiconductor strength is declining.
Objective facts and economic laws cannot be changed with just an executive order from the White House. The United States has learned many lessons in this regard, but it still lacks long-term memory.
TSMC was under political pressure to establish a beauty factory and invested money, but was unable to start construction for a long time;
Recently, the CEO of Intel, an American enterprise, even told Antony Blinken that "if there is no order from China, there is no need to open a new factory in the United States."
Despite being suppressed by the United States, the rapid development of China's high-tech industry in recent years is still evident to all. Enterprises from various countries investing in China are to share the development dividends of China and reflect the win-win situation of global economic cooperation.
The US government cannot give them opportunities for development and profitability, but it stubbornly obstructs the world from making money. Attempting to seal off China, but voluntarily giving up on growth points, only the United States itself can fall behind.
