US President Joe Biden signed an executive order banning entities in the country from making new investments in some sensitive technology sectors in China.
According to Reuters, a new executive order signed on August 9 allows the US Treasury Secretary to ban or limit US investment in China in three areas including semiconductors and microelectronics, quantum information technology and technology. some artificial intelligence (AI) systems.
The White House said the restrictions would apply to a narrow range of the three areas, but did not specify. In addition, the new order also requires US entities to report to the government about investments in certain other technology sectors in China.
A senior US official said the move was aimed at preventing the risk of "US capital and expertise helping to develop technologies that can assist in modernizing the Chinese military".
Beijing today (August 10) said it was "deeply concerned" about Washington's order, and warned it had the right to take retaliatory measures.
China's Ministry of Commerce accused the new executive order of President Biden, affecting the normal operation and decision-making process of enterprises, and undermining the international economic and trade order. The Chinese authorities expressed hope that the US would respect the rules of the market economy and the principle of fair competition, refrain from "obstructing global economic and trade exchanges and cooperation, or obstructing global trade and economic cooperation." fear for the recovery of the world economy".
For months, US officials have emphasized that any restrictions on US investment in China would be narrowly targeted.
“These are appropriate measures. They are not a technology blockade," US National Security Advisor Jake Sullivan said in April. Previously, US Commerce Secretary Gina Raimondo once noted, Washington "doesn't want to be too broad... Anything too broad hurts American workers and the economy."
Observers say that Biden's new executive order is expected to direct the publication of the proposed regulations. These regulations are not expected to take effect immediately, but will undergo a period of consultation, considering industry feedback before being ratified into law.