US to ban 'high tech' investment in China for security reasons
investmentweek.co.ukThe US government also said it will require US firms to notify the Treasury Department of such investments in Chinese artificial intelligence and semiconductor technology.
President Joe Biden unveiled the new order on Wednesday (9 August), stating that investment into the Chinese advanced chips and artificial intelligence sectors would also be monitored.
He said technological progress in these sectors posed «significant national security risks» such as using computers to develop sophisticated weapons or even break into data protected by advancing cryptographic coding.
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The US government also said it will require US firms to notify the Treasury Department of such investments in Chinese artificial intelligence and semiconductor technology.
This will mainly impact private equity and venture capital firms as well as US-Chinese joint ventures.
Today, China's commerce ministry responded to the order, saying it was «seriously concerned».
The ministry said it «deviates from the principles of fair competition and the market economy that the US consistently advocates» and that Beijing retained the right to take countermeasures.
Meanwhile, Liu Pengyu, a spokesperson for the Chinese embassy in Washington, said the US «has continuously escalated suppression and restrictions on China».
US Republicans however criticised the announcement for not being stricter. Nikki Haley, one of the GOP presidential contenders, said it was «not even a half measure».
«To stop funding China's military, we have to stop all US investment in China's critical technology and military companies, period,» she added.
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The move
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