Biden orders ban on investments in sensitive Chinese tech firms
President Joe Biden signed an executive order on Wednesday that will restrict US investments in Chinese companies that are involved in sensitive technologies, such as artificial intelligence, quantum computing, and semiconductors.
The order is part of Biden’s broader efforts to counter China’s growing technological prowess. The administration has argued that China is using its technological capabilities to threaten US national security and economic interests.
The order gives the US Treasury secretary the authority to identify specific Chinese companies that are subject to the restrictions. The Treasury secretary will also be responsible for developing a process for US investors to apply for licenses to invest in these companies.
The order is expected to have a significant impact on US-China relations. China has already condemned the order, calling it “unilateral and protectionist.” The order is also likely to face legal challenges from US businesses that are affected by it.
The order is a significant escalation of the US-China technology war. It remains to be seen how China will respond to the order, but it is clear that the two countries are headed for a more confrontational relationship in the years to come.
Here are some additional details about the order:
- The order applies to investments in both public and private Chinese companies.
- The order does not apply to investments in Chinese companies that are not involved in sensitive technologies.
- The order does not apply to investments in Chinese companies that are already majority-owned by US investors.
- The order will go into effect 60 days after it is published in the Federal Register.
The order is a significant step by the Biden administration to counter China’s growing technological prowess. It remains to be seen how China will respond to the order, but it is clear that the two countries are headed for a more confrontational relationship in the years to come.
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