China has criticized President Joe Biden’s recently signed executive order that regulates fresh U.S. investment in technology. However, they have not yet taken any immediate countermeasures. The Chinese Commerce Ministry responded strongly, expressing grave concern and reserving the right to implement measures in the future.
Biden’s executive order aims to limit U.S. investment and expertise in semiconductors, microelectronics, quantum computing, and certain artificial intelligence capabilities in China, Hong Kong, and Macao. It is part of a larger race for global technology supremacy.
The Chinese Ministry of Commerce stated that this order deviates from market economy and fair competition principles, affecting the normal operation and decision-making of enterprises. They believe it undermines the international economic and trade order and disrupts the security of global industrial and supply chains.
In October, the U.S. introduced rules to cut off exports of key chips and semiconductor tools to China, urging other chipmaking nations to do the same.
According to Eswar Prasad, an economics professor at Cornell University, the executive order will likely have a broad chilling effect on technology transfers and investments by U.S. firms in China. He explains that Washington is using the national security imperative to limit technology transfers to China, not only for national security reasons but also for commercial ones.
Overall, this executive order signifies the intense economic competition between the U.S. and China in new technologies. While it has been narrowly defined, it is expected to have significant implications for technology transfers and investments.
Please note that this is a developing story, and further updates will be provided.
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