New limits on China’s advanced tech investment announced by White House.

The⁤ Biden Administration Takes Stronger Stance in Trade War with China

President Joe‍ Biden has signed an executive order aimed at limiting certain types of foreign investment in‍ the country,⁢ particularly in cutting-edge technologies, while also mandating disclosure ‌of other investments. ⁢The move, according to the White House,‍ is a crucial step in ⁢safeguarding national security.

“The Biden-Harris administration‍ is committed⁣ to keeping America safe and defending America’s national security by protecting technologies that are critical to the next generation of military innovation,” the administration‌ said⁣ in a press release.

The executive order is ‍specifically designed to address the national security ​risks posed‍ by “countries of concern”‍ that could potentially exploit advanced technology ‍for⁢ military, intelligence, or surveillance purposes.

While acknowledging the importance of cross-border investment to the ⁣U.S. economy, the White House emphasized that the order is “narrowly targeted” to ensure national ⁤security.

Treasury Secretary Janet Yellen Voices Concerns

Treasury Secretary Janet Yellen expressed her concerns during her visit to China in July, criticizing the country for its punitive measures against foreign firms, particularly those from the U.S.

“During meetings with my counterparts, I am communicating the concerns ⁤that I’ve heard from the U.S. business community — including China’s use of nonmarket tools like expanded subsidies for ‌its state-owned enterprises and domestic firms, as well ⁣as barriers to market ‌access for foreign firms,” ‌Yellen said. “I’ve been particularly troubled by punitive actions that have been taken ⁣against U.S. ​firms in recent ⁣months,” she added.

Administration officials held ⁤a conference call with‌ reporters to outline the executive order, emphasizing that major U.S. companies should not be surprised as ⁤they have already engaged in discussions with relevant stakeholders who would be affected.

The order specifically identifies quantum information ‌technology, artificial intelligence systems, semiconductors, and ‍microelectronics as prohibited types of⁤ investment. This⁢ follows a series of other restrictions ⁢on U.S.-China trade introduced in the past year.

The Treasury Department will oversee the ⁤implementation of the new program, which will require notification of certain transactions ‌and impose full prohibitions on others.

“It’s important to recognize this is a national security action, not an economic one,” a‌ senior administration official clarified.

China is explicitly mentioned as⁣ a country of concern, with the White House highlighting ​its⁤ potential to exploit U.S. investment for⁢ the development of “sensitive technologies” that could enhance its military capabilities. Tensions between the U.S.⁣ and China have been escalating, particularly as China becomes more assertive in its claims over Taiwan.

The executive order aims to prevent​ China from accessing not only American money but also U.S. information and intelligence. The United States already has existing restrictions on exports to China.

The Treasury Department is also seeking public feedback on ⁣a proposed rule that will ⁢further​ define the scope and objectives of the program. The finalization of this rule‌ will occur at a​ later date.

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