On Wednesday, President Joe Biden signed an Executive Order blocking and regulating U.S. based tech investments in China. The Order declares a national emergency to address China’s “rapid advancement” in technologies and products not only that are critical to its military, but also to its intelligence, surveillance and cyber-enabled capabilities.
Senior administration officials stated the efforts stemmed from national security goals and that the Order seeks to weaken China’s ability to utilize American investments to strengthen their military and technology companies. According to sources, the Order covers advanced computer chips, micro-electronics, quantum information technologies and artificial intelligence.
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“The administration scaling back — at a time where aggressive action is needed more than ever — continues the trend of appeasing industry at the cost of national security,” said Representative Michael McCaul, chairman of the House Foreign Affairs Committee.
“We need to stop the flow of American dollars and know-how supporting the [Chinese Communist Party’s] military and surveillance technology rather than solely pursuing half measures that are taking too long to develop and go into effect,” he added.
“The U.S. habitually politicizes technology and trade issues and uses them as a tool and weapon in the name of national security,” Chinese Embassy spokesman Liu Pengyu said in a statement to The Washington Post. “We will closely follow the developments and firmly safeguard our rights and interests.”
China Slams Biden For "Blatant Economic Coersion And Bullying" After US Imposes Investment Limits https://t.co/uamytGVZMI
— zerohedge (@zerohedge) August 10, 2023
As the world’s two largest economies, the United States and China remain in geopolitical and trade competition. Biden administration officials, however, have “insisted that they have no interest in decoupling from China,” according to NPR.
Under the Order, investors would need to notify the U.S. government on their transactions with China. The Order aims to prohibit investments within private equity, venture capital and joint partnerships that could give China additional knowledge and military capabilities.
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