President Biden to Issue Executive Order Restricting Tech Investments in China

Date:

President Biden is set to issue an executive order aimed at restricting tech investments in China, according to sources familiar with the matter. The order, expected to be announced early next week, aims to prevent US capital and expertise from contributing to China’s military modernization and posing a threat to national security.

The executive order is specifically targeting private equity, venture capital, and joint venture investments in key sectors such as semi-conductors, quantum computing, and artificial intelligence. While most investments captured by the order will require government notification, some transactions will be prohibited altogether.

The move seeks to address a gap in the current regulatory regime by ensuring that the US has greater visibility and control over funding and know-how flowing into China. Cordell Hull, a former US Commerce Department official, highlighted the importance of plugging this gap, noting the existing restrictions on technology exports and inbound investments.

These new regulations are not expected to take immediate effect. The administration will solicit comments on its proposals and has already engaged in consultations with stakeholders and allied nations. The issue was also discussed during US Treasury Secretary Janet Yellen‘s recent trip to China. Yellen previously described the potential restrictions as highly targeted and directed at specific sectors of concern for national security.

While briefings on the executive order are expected to take place on Monday, the actual announcement may be delayed, as previous timelines have been extended multiple times before.

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Frequently Asked Questions (FAQs) Related to the Above News

What is the purpose of President Biden's executive order on tech investments in China?

The executive order aims to restrict tech investments in China to prevent US capital and expertise from contributing to China's military modernization and posing a threat to national security.

Which sectors will be targeted by this executive order?

The executive order specifically targets private equity, venture capital, and joint venture investments in key sectors such as semi-conductors, quantum computing, and artificial intelligence.

Will all investments in these sectors be prohibited?

While most investments captured by the order will require government notification, some transactions will be prohibited altogether.

What is the goal of the executive order in relation to US-China funding and know-how flow?

The executive order aims to ensure that the US has greater visibility and control over funding and know-how flowing into China, addressing a gap in the current regulatory regime.

Will these regulations take immediate effect?

No, the new regulations are not expected to take immediate effect. The administration will solicit comments on its proposals and has already engaged in consultations with stakeholders and allied nations.

Has US Treasury Secretary Janet Yellen been involved in discussions about these restrictions?

Yes, US Treasury Secretary Janet Yellen has been involved in discussions about these restrictions. She described the potential restrictions as highly targeted and directed at specific sectors of concern for national security.

When can we expect the official announcement of the executive order?

While briefings on the executive order are expected to take place on Monday, the actual announcement may be delayed, as previous timelines have been extended multiple times before.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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