US President Joe Biden is poised to sign an executive order aimed at curbing critical U.S. technology investments in China, according to reliable sources familiar with internal deliberations.
The forthcoming executive order, scheduled for the second week of August, focuses on three key areas: semiconductors, artificial intelligence, and quantum computing. Bloomberg News reports that it will not impact existing investments and will only target specific transactions. However, other technology deals will be subject to mandatory government disclosure.
The decision comes amid heightened concerns over China’s growing influence in the technology sector and potential national security risks. By limiting crucial technology investments in China, the Biden administration aims to safeguard sensitive American technologies from being exploited or used against U.S. interests.
While the exact details of the order are yet to be released, the focus on semiconductors, artificial intelligence, and quantum computing underscores the strategic significance of these sectors in the global tech landscape. The move is likely to have significant implications for tech companies and investors involved in cross-border collaborations between the two economic giants.
Beijing has already warned of retaliation should the U.S. impose new limits on technology or capital flows. The Chinese envoy in Washington made this clear earlier this month, signaling potential tensions between the two nations over technology and economic policy.
The internal discussions within the Biden administration have reportedly shifted from defining the measures’ substance to planning the order’s rollout and accompanying regulations. The complexity of the matter has led to several delays in finalizing the order, with the timing slipping numerous times.
As the global tech competition intensifies, this executive order could mark a pivotal moment in U.S.-China relations, impacting technology trade, investment, and research collaborations. Observers will closely monitor how China responds to the order and its potential repercussions on the global tech supply chain and market dynamics.
The Biden administration’s move comes in the context of broader efforts to maintain U.S. technological leadership and national security in a rapidly evolving global technology landscape. The extent and implementation of the order will be crucial in determining its overall impact on U.S. businesses, China’s tech sector, and the delicate balance of technology cooperation and competition between the two superpowers.
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