In a move aimed at regulating new U.S. investments and expertise that supports Chinese development of sensitive technologies, President Joe Biden signed an executive order on Wednesday. This measure, expected to be implemented next year, targets investment in semiconductors and microelectronics, quantum computing, and certain artificial intelligence capabilities. Biden warned that certain American investments may contribute to the development of technologies and products in countries that seek to counter the United States and its allies.
The executive order also includes a requirement for outbound U.S. investors to provide notifications to the Treasury Department. Treasury Secretary Janet Yellen is tasked with defining sensitive technologies and products in these categories and coordinating action with other key officials.
Beijing has opposed the measure, calling it an attempt to politicize and weaponize trade between the two largest economies. Chinese Embassy spokesperson Liu Pengyu stated that the restrictions will undermine the interests of both Chinese and American companies and investors, and hinder business cooperation between the two countries. China urges Biden to stop trying to hinder its economic development.
Senior administration officials have emphasized that the executive order is tailored to prevent any negative impact on business relations. They recognized the importance of cross-border investment flows to the U.S. economy and stated that the order was designed to protect national security interests while maintaining a commitment to open investment. The officials also mentioned that allies, bipartisan lawmakers, and industry leaders were consulted during the process and similar restrictions are expected from other countries.
Overall, the executive order aims to strike a balance between national security concerns and economic vitality, without stifling business relations or hindering global investment flows.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
