This is yet another stage of the technological war between the world’s two largest economies, which will allow the Americans to slightly limit Beijing’s access to the latest technological solutions.
Biden signed the executive order. Stop investing in China. Several sectors affected
According to the document signed by Biden on Wednesday, American companies will not be able to invest in Chinese companies operating in selected sectors. These are companies related to new technologies and dealing with integrated circuits, microelectronics, artificial intelligence and quantum technologies. The restrictions will come into effect next year.
Senior officials in the Biden administration told the AP that the lockdown was imposed primarily because of concerns about US “national security” rather than the country’s economic interests. Apparently that’s why the ban was narrowed down to just four sectors. The US does not want American investments in China to be used by the government in Beijing for the technological modernization of the army of the People’s Republic of China. According to Biden, American money has supported the development of the Chinese military for too long.
However, it is no secret that the blockade may limit the development of the Chinese technology industry, which is very convenient for the United States due to the technological and economic competition with China. Hong Kong and Macau are also likely to be banned, as both of these special administrative regions of China, along with the mainland, have been designated as “countries of concern”.
China corresponds to the US. Beijing reserves the right to respond
It didn’t take long for China to respond. China’s Ministry of Commerce expressed its dissatisfaction with Joe Biden’s decision on Thursday. It said the White House completely ignored China’s “repeatedly expressed deep concern” about the US’s actions. It added that Beijing “reserves the right” to take appropriate measures in response and said the US should adhere to the principles of a market economy and fair competition. China also described the ban as an economic “threat”, but has not yet specified what steps it will take in response.
The decision by the Americans apparently surprised Britain, which has recently been trying to “stabilize its relationship with Beijing”. A spokesman for the British prime minister said Biden’s decree clearly defined the U.S. approach to China. He added that London would have to carefully assess the “potential national security risks associated with certain investments” in China before taking any action.
Source: Gazeta
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