“China, which has been preparing for this eventuality for years, has invested in developing a formidable technology innovation ecosystem, including not only abundant capital but increasingly sophisticated expertise around cultivating companies in terms of turning technologies into actual products and services,” he said. “This is another expression of American anxiety if not desperation to try to squelch China’s economic technological rise,” said Andy Mok, a senior research fellow with the Center for China and Globalisation, a think tank based in Beijing. ![]() Treasury said it anticipates exempting “certain transactions, including potentially those in publicly-traded instruments and intracompany transfers from US parents to subsidiaries”. ![]() Most investments captured by the order will require the government to be notified about them. It is focused on private equity, venture capital, joint venture and greenfield investments. The order is aimed at preventing US capital and expertise from helping develop technologies that could support China’s military modernisation and undermine US national security. “There are several caveats though, this will affect new investments, existing ones won’t be affected.” China says the US ‘habitually politicises technology and trade issues’ They are trying to prevent indigenisation of China’s capabilities to become master in sensitive technology,” he said from Washington DC. “There are already restrictions on the export of some of these technologies. Today the United States is taking a strategic first step to ensure American investment does not go to fund Chinese military advancement.” He said Congress must enshrine restrictions in law and refine them.Īl Jazeera’s Shihab Rattansi said these restrictions, according to the White House, are a result of two years of internal deliberations. Senate Democratic Leader Chuck Schumer praised Biden’s order, saying: “For too long, American money has helped fuel the Chinese military’s rise. ![]() The move could fuel tensions between the world’s two largest economies, although US officials insisted the prohibitions were intended to address “the most acute” national security risks and not to separate the two countries’ highly interdependent economies. Yet, the US has limited the export of advanced computer chips, sought to limit investments in China and kept the expanded tariffs set up by former President Donald Trump. Biden administration officials have insisted that they have no interest in “decoupling” from China. The US and China appear to be increasingly locked in geopolitical competition, along with their deep trade relationship as the world’s two largest economies. ![]() The order seeks to blunt China’s ability to use US investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations’ economies. Senior administration officials said that the effort stemmed from national security goals, rather than economic interests and that the categories it covered were narrow in scope. The long-awaited order authorises the US treasury secretary to prohibit or restrict certain US investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. Keep reading list of 4 items list 1 of 4 Canada says ‘highly probable’ China had role in targeting of lawmaker list 2 of 4 India passes data protection bill amid surveillance concerns list 3 of 4 Twitter fined for delay in complying with federal Trump election probe list 4 of 4 Robbie Robertson, leader of Canadian-US group The Band, dies at 80 end of list
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