The Biden administration has escalated the trade war with China.
President Joe Biden signed an executive order that would limit certain types of foreign investment in the country, particularly in advanced technology, while requiring disclosure of other investments. The White House says the move is to protect national security.
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The measure is designed to address the threat to national security posed by "countries of interest" that may develop advanced technologies to be used for nefarious military, intelligence or surveillance purposes.
“The Biden-Harris administration is committed to keeping America safe and defending America's national security by protecting key technologies for the next generation of military innovation,” the administration said in a statement.
Cross-border investment is important to the US economy, the statement added, saying the order is "strictly directed" at protecting national security.
After Treasury Secretary Janet Yellen visited China in July and criticized the country for its punitive measures against foreign companies, particularly those from the United States.
"In meetings with my colleagues, I relay concerns I've heard from the American business community, including China's use of non-market tools, such as increased subsidies for its national and state-owned companies, as well as barriers to foreign market. access for businesses," Yellen said. .
“I am particularly concerned by the punitive actions taken against US companies in recent months,” he added.
Administration officials held a conference call with reporters Wednesday afternoon to explain the move and said it should come as no surprise to major US companies, which have already met with interested parties.
The order names quantum information technologies, artificial intelligence systems, semiconductors and microelectronics as prohibited types of investment and follows major trade restrictions imposed by the United States and China last year.
The new program will be administered by the Department of Finance and will require the Treasury to report some transactions, as well as outright bans on others.
“It is important to recognize that this is a national security action, not an economic one,” said a senior administration official.
China is particularly concerned as a country, with the White House saying the country already has the ability to harness US investment to produce "sensitive technologies" that could improve its military. Tensions between the United States and China have been on the rise for years, especially since the latter has become more aggressive with its claims against Taiwan.
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White House officials said the idea behind the executive order was to prevent China from getting US information and intelligence, not just US money. The United States already bans or restricts many exports to the country.
The Treasury Department is also proposing legislation that further defines the size and role of the program and invites public comment. This rule will be completed later.
