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Biden to restrict U.S. technological investments in China next week - Reuters

Biden to restrict U.S. technological investments in China next week - Reuters President of the United States Joe Biden (Photo:
Author: Daria Shekina

President of the United States Joe Biden will sign an executive order at the beginning of next week regarding the review and limitation of outbound investments in "sensitive technologies" to China, according to Reuters.

With this directive, the White House aims to hinder American capital's assistance in the development of technologies that support China's military modernization, as it poses a threat to U.S. national security.

It is expected that the executive order will restrict investments from American private and venture capital in semiconductors, quantum computing, and artificial intelligence in China. Some transactions will be completely prohibited.

"We have prohibitions on exporting the technology. We have restrictions on in-bound investment. This will help to plug that gap on funding and know-how and give the government visibility into these capital flows," said Cordell Hull, a former U.S. Commerce Department official.

Technological investments in China
Control over investments has become an integral part of the broader White House initiatives aimed at limiting China's potential in developing next-generation technologies, particularly in the military sphere. These measures have further complicated the already strained relations between the United States and China.

Previously, the United States and the Netherlands announced the introduction of new restrictions that would apply to Chinese microchip manufacturers and further limit the sale of equipment for their production.

Later, it became known that the administration of the President of the United States is working on an executive order to restrict critically important investments in technology in China. It was noted that Biden will sign the relevant directive in mid-August.