Biden Issues Order Restricting US Investment in Chinese Tech

President Joe Biden signed an executive order restricting US investment in Chinese Tech. The order will restrict certain United States investments in sensitive technology in China and require government notification of funding in other tech sectors.

Biden said in a letter to Congress he was declaring a national emergency to deal with the threat of advancement by countries like China “in sensitive technologies and products critical to the military, intelligence, surveillance, or cyber-enabled capabilities”.

Biden Issues Order Restricting US Investment in Chinese Tech

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The long-awaited order authorises the US treasury secretary to prohibit or restrict certain US investments in Chinese entities. It includes semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.

Senior administration officials said that the effort derived from national security goals, rather than economic interests. Also, the categories it covered were narrow in scope. The order seeks to blunt China’s ability to use US investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations’ economies.

The Chinese Ministry of Commerce responded that it has “serious concern” about the order and “reserves the right to take measures.”

The United States and China appear to be increasingly locked in geopolitical competition with a conflicting set of values. Biden administration officials have insisted that they have no interest in “decoupling” from China. Yet, the US has limited the export of advanced computer chips.

The move could fuel tensions between the world’s two largest economies. The US officials insisted the restrictions were intended to address “the most acute” national security risks. They also assured that they do not want to separate the two countries’ highly interdependent economies.

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