LAGOS, Nigeria (VOICE OF NAIJA) – US President Joe Biden is planning to sign an executive order by mid-August, aiming to limit critical US technology investments in China.
The order will primarily focus on semiconductors, artificial intelligence, and quantum computing.
While it won’t affect existing investments, it will restrict specific transactions and mandate the disclosure of other deals to the government.
Although the order’s timing has faced multiple delays, internal discussions have shifted towards its implementation and related regulations.
These restrictions will only take effect next year, and their specifics will be outlined through a rulemaking process, allowing stakeholders to provide input. National Security Council declined to comment on the matter.
This executive order is part of a broader White House effort to curb China’s capabilities in developing next-generation technologies, impacting national and economic security.
China views these restrictions as an attempt to contain and isolate the country, and its envoy in Washington has warned of retaliation if the US imposes technology or capital flow limits.
Treasury Secretary Janet Yellen has attempted to alleviate Chinese concerns about these restrictions, asserting that they won’t significantly hinder US investment attractiveness in China.
Yellen emphasized that these controls would not broadly affect US investment in China or fundamentally impact China’s investment climate.
During her visit to China, Yellen reiterated that the restrictions and existing export controls were not retaliatory measures against China or intended to stifle its growth.
National Security Adviser Jake Sullivan initially discussed this concept publicly in July 2021.
However, some China hawks in the US are calling for stronger and faster action, with lawmakers from both parties expressing interest in legislating on the matter, although a bill has not yet reached President Biden’s desk.
The Senate recently passed an amendment to the national defense policy bill requiring firms to notify the government about certain investments in China and other countries of concern, though these investments wouldn’t undergo review or possible prohibition.