Last Updated: August 10, 2023, 09:26 IST
The new rules, expected to be implemented next year, target sectors like semiconductors and artificial intelligence, as Washington seeks to limit access to key technologies. (File: Reuters)
Biden administration imposes restrictions on American investments in China’s sensitive tech industry. Beijing responds, straining US-China ties
Beijing on Thursday slammed the Biden administration for imposing fresh restrictions on American investments in China’s tech industry. Chinese Commerce Ministry rebuked the restrictions, accusing the US of pushing for “decoupling” bilateral investment while claiming it’s for “de-risking.”
“The US’ move seriously violates the principles of market economics and fair competition that the US has always proclaimed, and will impact business operations and decision making, in addition to damaging international trade rules and seriously disrupting global industrial and supply chains,” China’s Commerce Ministry said, as quoted by state media outlet Global Times.
This statement comes hours after US President Joe Biden issued an executive order aimed at restricting certain American investments in sensitive high-tech areas in China—a move that could strain ties between the world’s top two economies.
The new rules, expected to be implemented next year, target sectors like semiconductors and artificial intelligence, as Washington seeks to limit access to key technologies.
“The commitment of the United States to open investment is a cornerstone of our economic policy and provides the United States with substantial benefits,” Biden said in a letter to Congressional leaders announcing the executive order.
“However, certain United States investments may accelerate and increase the success of the development of sensitive technologies and products in countries that develop them to counter United States and allied capabilities.”
The US Treasury Department is preparing a program that aims to restrict new private equity, venture capital, and joint venture investments in advanced semiconductors and select quantum information technologies in China.
The move is designed to boost Washington’s national security, preventing China from acquiring cutting-edge technologies for military purposes. The program may require notification for US investments in Chinese entities dealing with less advanced semiconductors and specific artificial intelligence activities.
However, exceptions could be made for certain US investments involving publicly traded securities and transfers between US parent and subsidiary companies.
(With AFP inputs)
