White House to detail plans restricting some US investments in China -source
By Karen Freifeld and David Shepardson
NEW YORK/WASHINGTON (Reuters) -The White House on Wednesday will detail its plans to prohibit some U.S. investments in sensitive technology in China, and require that the government be notified of other investments, a senior government source told Reuters.
The plans are aimed at preventing U.S. capital and expertise from helping develop technologies that could support China’s military modernization and threaten U.S. national security.
Reuters reported on Friday that President Joe Biden was expected to soon issue the long-awaited executive order to screen outbound investments in sensitive technologies to China this week.
The senior government source said that order is expected Wednesday. The White House declined to comment on Tuesday.
The administration is expected to target active investment such as U.S. private equity, venture capital and joint venture investments in China in semiconductors and microelectronics, quantum computing and artificial intelligence.
Most investments captured by the order will require that the government be notified about them, sources have said. Some transactions will be prohibited.
Biden administration officials have stressed for months any restrictions on U.S. investment in China will be narrowly targeted.
“These are tailored measures,” National Security Advisor Jake Sullivan said in April. «They are not, as Beijing says, a ‘technology blockade'.»
The regulations will only affect future investments, not existing ones, according to a person briefed on the executive order.
It is expected to be implemented next year, the person said, after multiple rounds of public comment, including an initial 45-day comment period.
Regulators plan to issue an advanced
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