World
Biden Admin Set To Unveil Strategy To Curb US Investments In Sensitive Technology In China: Report
Joe Biden (left) and Xi Jinping (Representative Image).
The White House is reportedly set to announce its plans to restrict certain US investments in sensitive technology in China, and require that the government be notified of other investments.
This move aims to prevent the use of American capital and expertise in developing technologies that could potentially support China's military modernisation and pose a threat to US national security.
President Joe Biden is expected to issue an executive order this week to screen outbound investments in sensitive technologies to China.
The executive order is expected to be issued on Wednesday (9 August), Reuters reported citing a senior US government source.
Biden administration officials have reportedly emphasised that any restrictions on US investment in China will be narrowly targeted.
National Security Adviser Jake Sullivan stated in April that these measures are "tailored" and not intended to be a "technology blockade", as claimed by Beijing.
In March, US Commerce Secretary Gina Raimondo expressed the administration's intention to avoid broad restrictions that could harm American workers and the economy.
The administration's target is expected to be active investment in China, particularly in areas such as semiconductors, quantum computing, and artificial intelligence. This includes US private equity, venture capital, and joint venture investments.
Most investments captured by the order will require government notification, with some transactions being prohibited.
According to a New York Times report, firms investing in various sectors in China will now have to report their activities to the US government.
This requirement will provide the US government with a better understanding of financial transactions between the two countries.
Investments in semiconductors are reportedly expected to follow the export control rules for China issued by the US Department of Commerce in October.
The anticipated order from Biden is likely to include the publication of a notice of proposed rule-making. However, it is important to note that this order will not immediately take effect, as there will be a comment period to consider industry feedback before finalisation.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
