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.

• 22 Sep

  HDFC Bank stock expected to re-rate in next 12-18 months, says Motilal Oswal’s Nitin Aggarwal

  Aggarwal is bullish on HDFC Bank's long-term prospects, but he believes that investors should wait and see how the bank executes in the near term.

• 22 Sep

  Sai Silks’ IPO attracts lukewarm response, analysts raise concerns

  Sai Silks Kalamandir's IPO received a lukewarm response with a subscription rate of just 0.07 times. Analysts have raised concerns about the company's high debt levels, intense competition in the industry, and the fact that half of the issue size is an OFS. The company also has 30 percent of its promoter holdings pledged. Despite these concerns, the company's management is confident about its growth prospects.

• 22 Sep

  PSU bank shares make a comeback on JPMorgan’s index inclusion decision

  PSU bank shares made a strong comeback on September 22, after JPMorgan's decision to include Indian government bonds in its emerging-market index boosted investor sentiment. However, analysts are urging caution with regard to the PSU bank space, citing the risks of investing in smaller PSU banks and the potential for divestment in some of the larger banks. Investors should carefully consider the risks and rewards before investing in PSU bank shares.

• 22 Sep

  SEBI penalizes 11 entities for non-genuine trades in illiquid stock options segment

  The Securities and Exchange Board of India (SEBI) has penalized 11 entities for non-genuine trades, fined 2 entities for flouting disclosure rules, and suspended the registration of 1 research firm for violating regulatory norms. SEBI's actions are a reminder to market participants that they must comply with all regulatory requirements. Investors should be aware of these risks and take necessary precautions to protect themselves.

• 22 Sep

  Zaggle Prepaid Ocean Services Stock Makes Weak Debut, Analysts Recommend Selling

  Zaggle Prepaid Ocean Services stock made a muted debut on bourses on September 22, listing at a premium of just 0.6% over the IPO price. Analysts have recommended selling the stock on the opening day, citing its high P/E valuation, debt-to-equity ratio, and negative cash flow.

• 1Auto
• 29Business
• 4Commodity
• 1Companies
• 1Cricket
• 6Currency
• 4Earnings
• 14Economy
• 2Entertainment
• 3Expert Columns
• 14India
• 60IPO
• 92Markets
• 44News All
• 2Opinion
• 6Personal Finance
• 7Politics
• 12Real Estate
• 101Stocks
• 1Technical
• 0Technology
• 0Trends
• 1Weather
• 30World