Sources with knowledge of internal discussions say that US President Joe Biden is about to sign an executive order that will stop important U.S. investments in technology in China.
The upcoming executive order, which is set to happen in the second week of August, will focus on three key areas:
Bloomberg News says it won’t affect investments that have already been made and will only affect certain deals. But the government will have to tell the public about other business deals.
Concerns about China’s growing impact in the technology sector and possible threats to national security led to the decision. By putting limits on important technology investments in China, the Biden administration is trying to keep secret American technologies from being used against U.S. interests or taken advantage of.
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Even though the exact details of the order haven’t been shared yet, the focus on semiconductors, AI, and quantum computing shows how important these areas are in the global tech scene.
The move is likely to have big effects on tech companies and investors who work together across borders between the two biggest economies.
Beijing has already said that it will fight back if the U.S. puts new limits on how technology or money moves. This was made clear by the Chinese ambassador in Washington earlier this month, showing that there could be trouble between the two countries over technology and economic policy.
Inside the Biden administration, the focus has moved from figuring out what the measures will do to planning how the order will be implemented and what rules will go along with it. Due to the difficulty of the situation, the order has been put off more than once, and the deadline has changed several times.
As tech competition around the world heats up, this executive order could be a turning point in U.S.-China ties, affecting trade, investment, and research partnerships in tech. People will pay close attention to how China reacts to the order and how it might affect the global tech supply chain and the way the market works.
The move by the Biden administration is part of a larger effort to keep U.S. technological leadership and national security in a world where technology is changing quickly. How big the order is and how it is carried out will be very important in figuring out how it will affect U.S. companies, China’s tech industry, and the delicate balance between cooperation and competition in technology.
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