Biden Enacts Decree Limiting American Investments in China
US President Joe Biden has signed a decree that restricts American investments in a range of Chinese companies in order to curtail China's ability to develop technologies that could pose a threat to US national security. The relevant announcement has been posted on the White House website.
The decree pertains to "certain technologies and products in concerning countries." One of these countries is precisely China (including Hong Kong and Macao). The restrictions apply to sectors related to technologies that the US considers critically important for its national security. These include semiconductors and microelectronics, quantum information technologies, and artificial intelligence.
The document is aimed at Americans seeking to acquire stakes in private Chinese companies through mergers, as well as through joint ventures and financial deals. It does not extend to passive investments.
The directive comes at a time when Biden is preparing to update the comprehensive export control measures implemented in October to make it more difficult for Chinese groups to procure or produce advanced semiconductors and tools for microchip manufacturing.
"This program will be designed to prevent countries of concern from leveraging US investment in this narrow set of technologies critical to supporting the development of their military, intelligence, surveillance, and cyber capabilities that threaten US national security," the statement reads.
It is noted that President Biden signed this executive decree after extensive and thorough consultations with hundreds of stakeholders, industry representatives, and foreign allies and partners. These actions will be subject to a period of notices and comments to gather additional public feedback and make necessary adjustments before the rule takes effect.
China's Ministry of Commerce reacted to Biden's directive on Thursday morning, stating that the country "retains the right to take countermeasures."
Recall that political analyst Mykola Davydiuk shared his opinion about the possibility of a future global conflict between the West and China. He believes that such a development of events is highly realistic. For more details, tune in to the "Talk for More: Details show Episode 6".