Biden orders restrict U.S. investments in China’s technology

U.S. President Joe Biden on Wednesday (local time) signed an executive order to restrict investments in Chinese cutting-edge industries believed to threaten national security. Consequently, U.S. businesses will not be able to invest in China’s advanced semiconductors, AI, and quantum computing.

President Biden announced that this program declares a national emergency to stand against the threats to a set of core technologies that are crucial to military, intelligence, surveillance, and cyberspace support. He specified China, Hong Kong, and Macao as “Countries of Concern.”

Subsequently, the U.S. Treasury Department issued an Advance Notice of Proposed Rulemaking (ANPRM) to keep new U.S. investments from flowing into China or one of the countries of concern. It particularly restricts U.S. venture capital and private equity firms from spending money on China’s advanced semiconductors, AI, and quantum computing. Being in effect an investment ban, the measure will require U.S. businesses to report an investment plan before newly investing in China’s less advanced integrated circuits or AI technologies other than military surveillance-purpose developments. This executive order is applicable only to new investments and goes into effect next year.


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