Biden Administration Imposes Limits on Investment in Chinese Tech Firms
President Joe Biden has issued an executive order imposing restrictions on American investment in specific Chinese tech companies, aiming to tackle national security risks associated with enterprises involved in “sensitive technologies” such as semiconductors, quantum computing, and artificial intelligence.
“In these sectors, the development of sensitive technologies and products will accelerate the development of advanced computing capabilities, enabling new applications that pose significant national security risks, such as the development of more sophisticated weapons systems, breaking encryption codes, and other applications that can provide these countries with military advantages,” the executive order states.
The White House described the measure as “narrowly targeted” and said it was intended to prevent funding for “entities engaged in specific activities related to these technology areas that pose the most acute national security risks.” As The Washington Post points out, responsibility for implementing the executive order would rest with the Treasury Secretary.
The executive order, which doesn’t take effect until 2024, is hardly the first time the United States has sought to limit the influence of Chinese tech companies in recent years. Both Biden and his predecessor placed significant restrictions on Huawei. The White House has also restricted sales of supercomputer technology to Chinese companies and sought to block China’s access to advanced chip-making equipment. The Biden administration has also pressured ByteDance, the Chinese owner of TikTok, to sell the popular app.
