The Biden administration has implemented sweeping measures to block US investment in Chinese tech companies as part of an effort to protect US national security. In a presidential executive order issued on Wednesday, the administration announced bans on Americans collaborating with high-tech Chinese companies and reinforced previous bans on exports of advanced technology to China. The aim of these measures is to curb the rise of the Chinese economy, which the US sees as a significant threat to its global dominance.
The executive order requires American citizens doing business in China to inform the US government about investments in artificial intelligence and work in advanced semiconductor production. While the order does not specifically name China, an appendix mentions China, Hong Kong, and Macau as the countries of concern. It argues that these countries are eliminating barriers between civilian and military sectors and acquiring cutting-edge technologies to achieve military dominance, posing a threat to US national security.
The executive order’s broad scope indicates that the bans will be extended across the board. It claims to support open capital flows and cross-border investment but emphasizes that the economic rise of China, which relies on high-tech development, poses an existential threat to the US economy and national security. The order gives the Treasury secretary the authority to identify transactions that significantly advance the military capabilities of these countries of concern.
However, the US faces an economic problem in imposing these bans as high-tech production relies on a complex international division of labor. Concerns have been raised in other countries about the impact of US sanctions on high-tech production. South Korea, for example, fears that US sanctions against China will prompt China to make rapid technological progress, which could pose a crisis for South Korea’s own tech industry.
While the executive order indicates the US’s intention to bring high-tech production back to its shores or restrict it to close allies, critics argue that the measures do not go far enough. Some Republicans, including Nikki Haley, have called for a complete halt to US investment in China’s critical technology and military companies.
The US’s economic warfare against China is accompanied by a military buildup, attempts to create anti-China alliances, and provocative actions related to Taiwan. To counter this war drive, some argue for the mobilization of the international working class on a socialist anti-war program. However, the US aims to maintain its dominance through economic and military power, which poses a risk of a nuclear holocaust.
In conclusion, the Biden administration’s executive order marks a significant escalation in the US’s technology war against China. By blocking US investment in Chinese tech companies and reinforcing export bans, the US aims to hinder the growth of the Chinese economy, which it sees as a paramount threat. However, the economic interdependence of high-tech production poses challenges for the US, and critics argue that more severe measures are necessary. The US’s actions also raise concerns in other countries, and some suggest that international collaboration may be crucial in countering the US’s aggressive stance.
