China Criticizes has expressed strong criticism of President Joe Biden’s newly signed executive order that regulates fresh U.S. investment in technology, particularly targeting “countries of concern” based on national security grounds.
The Chinese Commerce Ministry issued a statement early Thursday in Asia, stating that China has “grave concern” and reserving the right to take further actions.
The executive order aims to restrict U.S. investment and expertise in areas such as semiconductors, microelectronics, quantum computing, and specific artificial intelligence capabilities in China, Hong Kong, and Macao.
While China’s response highlighted its concerns China Criticizes, it did not immediately announce countermeasures.
The Chinese Ministry of Commerce noted that the order deviates from market economy principles and fair competition that the U.S. has advocated.
It raised concerns about the impact on enterprises, disruption of global industrial and supply chains, and undermining the international economic and trade order.
The executive order’s language resembles a milder version of the initial Outbound Investment Transparency Act introduced in the Senate.
Instead of an outright ban, the revised version mandates U.S. China Criticizes companies to inform the Treasury when investing in advanced Chinese technology due to national security concerns.
This nuanced approach indicates a desire for transparency and focused targeting of technology-related investments.
Eswar Prasad, an international trade professor at Cornell University, explained that the executive order’s primary message is Washington’s intent to limit technology transfers and investments related to technology into China.
This limitation serves both national security China Criticizes and commercial interests. Prasad suggested that while the order’s focus is narrow, it could still have a broad chilling effect on U.S. firms’ technology transfers and investments in China.
The executive order comes at a time of heightened competition for global technology dominance between the U.S. and China.
By introducing measures to regulate investments China Criticizes, the U.S. aims to safeguard its strategic interests while maintaining a competitive edge in the evolving tech landscape.
As both countries navigate these intricate dynamics, the impact of these policies on the tech industry and international relations remains to be seen.
Source : cnbc.com
