In a significant move to address growing concerns over national security and technological competition, President Joe Biden is poised to sign an executive order that will limit US tech investments in China. The decision, expected to be executed by mid-August, marks a pivotal moment in the evolving dynamics between the two economic giants.
According to Moneycontrol , U.S. President Joe Biden is planning to sign an executive order to limit critical U.S. technology investments in China by mid-August, Bloomberg news reported on Friday, citing people familiar with the internal deliberations. The order focuses on semiconductors, artificial intelligence and quantum computing. It will not affect any existing investments and will only prohibit certain transactions. Other deals will have to be disclosed to the government.
The United States and China have long been engaged in an intricate dance of economic cooperation and competition. However, recent years have seen a sharp increase in tensions, primarily fueled by concerns surrounding national security and intellectual property theft. The US government, along with several key allies, has grown increasingly wary of China’s expanding influence in the technology sector and its alleged involvement in cyber espionage.
The schedule for the order, initially planned for the second week of August, has faced multiple delays in the past, leaving uncertainties about potential further postponements. However, according to anonymous sources familiar with the matter, internal discussions have transitioned from the content of the measures to the execution of the order and the associated regulations.
China’s envoy in Washington said earlier this month that Beijing would retaliate if the US imposes new limits on technology or capital flows. National Security Adviser Jake Sullivan first publicly discussed the concept in July 2021. Lawmakers from both parties have also shown interest in legislating on the matter although a bill has not yet made it to Biden’s desk.
