Saturday, July 13, 2024

US President Joe Biden to Limit American Investment in China’s Advanced Technology Essential for Enhancing Chinese Military Power

Biden Administration Mulling to Curb US Investment in Critical Chinese Technology Industries: Report

The Biden administration is considering imposing restrictions on US investments in critical Chinese technology industries that play a crucial role in modernizing China’s military. The proposed rules from the Treasury Department would block certain American investments in Chinese companies working on semiconductors, quantum computers, and artificial intelligence systems. This move is aimed at preventing American funding from aiding China in developing advanced technology that could potentially be used for military purposes, surveillance, and intelligence gathering.

If implemented, this proposal could further strain economic relations between the US and China at a time when trade tensions are already escalating. The finalized rules are expected to be announced later this year. The Treasury Department’s Assistant Secretary for Investment Security, Paul Rosen, emphasized that this rule would safeguard national security by preventing US investments from supporting the development of sensitive technologies that could threaten national security.

President Biden had previously issued an executive order calling for the investment ban, targeting venture capital and private equity firms involved with Chinese companies. The proposed restrictions would require investors to report certain transactions to the Treasury Department and explicitly prohibit some types of investments. The Treasury Department would also have the authority to enforce divestment and refer violations for criminal prosecution through the Justice Department.

In addition to these potential investment restrictions, the Biden administration has also directed the US Trade Representative to increase tariffs on $18 billion worth of imports from China, including semiconductors, solar cells, batteries, and critical minerals. This decision was made in response to China’s alleged unfair trade practices and aims to protect American workers and businesses from the harms caused by China’s trade policies.

Overall, these measures reflect the Biden administration’s efforts to address China’s alleged unfair trade practices and protect national security interests against the backdrop of escalating tensions between the two economic powerhouses.

Related Articles

Latest Articles

Most Popular