China Criticizes President Biden’s Executive Order on Technology Investment
China has criticized President Joe Biden’s recently signed executive order that regulates fresh U.S. investment in technology. However, they have not immediately announced any countermeasures in response.
The Chinese Commerce Ministry issued a strong response, expressing grave concern and reserving the right to implement measures. The statement highlights that the order deviates from market economy and fair competition principles advocated by the U.S. It also claims that the order disrupts the security of global industrial and supply chains, affecting the normal operation and decision-making of enterprises.
Biden’s order aims to limit U.S. investment and expertise in semiconductors, microelectronics, quantum computing, and certain artificial intelligence capabilities in China, Hong Kong, and Macao. It is not an outright ban but rather a restriction.
U.S. Efforts to Restrict Technology Transfers to China
In October, the U.S. implemented comprehensive rules to cut off exports of key chips and semiconductor tools to China. They also lobbied major chipmaking nations like Japan and the Netherlands to adopt similar measures.
“I think it is going to have a pretty broad chilling effect on technology transfers and investments by U.S. firms in China,” said Eswar Prasad, an economics professor at Cornell University.
– Eswar Prasad, economics professor, Cornell University
According to Eswar Prasad, the executive order reflects Washington’s desire to limit technology transfers and investments related to technology in China. He believes that the order’s impact will extend beyond national security concerns to also include commercial competition between the U.S. and China.
Prasad further notes that while the executive order is narrow in scope, it will have a broad impact on technology transfers and investments by U.S. firms in China.
This is a developing story. Please check back for more updates.
