Key Republican urges Biden to set broad restrictions on U.S. investments in China
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Biden EO Restricts US Tech Investment in China
Last updated Aug 10, 2023
Image credit: Wikimedia CommonsFacts
- On Wednesday, Pres. Joe Biden signed an executive order (EO) restricting US investment in some of China’s high-tech industries, including quantum computing, artificial intelligence, and advanced semiconductors.
- The EO, aimed at preventing US capital and intelligence from aiding in China’s military modernization and the alleged undermining of US national security, comes amid rising tensions between the world’s largest economies.
- US Treasury Sec. Janet Yellen discussed these restrictions during meetings with her Chinese counterparts last month.
- The EO requires specific investments to be reported to the government and will ban certain transactions. It will apply only to future investments and will not take effect until 2024.
- Previously, the administration imposed export controls to block China’s access to chipmaking tools that could benefit the Chinese military.
- The EO lists China, Hong Kong, and Macau as “countries of concern,” but the administration has signaled it could add other countries in the future.
Spin
Anti-China narrative
It’s about time the US realized the threat China poses and acted to prevent it from obtaining advanced technology that’s crucial to building up a modern military. This is a national security risk the US must snuff out.
Pro-China narrative
The US is only hurting itself and the rest of the global economy by issuing an order that will exacerbate the supply chain crisis. Meanwhile, China will continue to develop semiconductors and other equipment that will make its military as advanced as it wants it to be. It’s a lose-lose for the US.
Nerd narrative
There’s a 20% chance that there will be a US-China war before 2035, according to the Metaculus prediction community.
