US President Joe Biden has banned investment in China’s sensitive technology sector through a presidential decree.
According to the news agency Reuters, Joe Biden signed a presidential order on Wednesday, after which American companies will not be able to invest in other sensitive technologies such as computer chips in China.
The order would give the Treasury Secretary the authority to freeze or limit US investment in Chinese companies in three areas.
These three areas of technology include semiconductors and microelectronics, quantum information, and specialised artificial intelligence systems.
The ban is intended to prevent US investment and expertise from helping China develop technology that could lead to increased military capabilities and threaten US national security.
President Biden has also written a letter to Congress in which he said he is imposing a national emergency to deal with the technological advancements of countries like China and the threats they pose.
In the letter, the US President mentioned the threats posed by countries like China’s development of sensitive technology and important products related to the military, intelligence, surveillance, or cyberspace.
China, on the other hand, expressed “deep concern” over the presidential decree, saying it had the right to take measures on the matter.
Chinese Ministry of Commerce
A statement issued by the Chinese Ministry of Commerce on Thursday said that the decree affects the normal operations of companies and their decision-making and is harmful to the international economic and trade structure.
The statement expressed the hope that the United States, while respecting the rules of the market economy and the principles of fair competition, will not create obstacles to economic and trade exchanges and cooperation at the global level, nor will it block the recovery of the global economy.
The Chinese Foreign Ministry also reacted, expressing “deep dissatisfaction” and saying it opposes US investment restrictions.
The Ministry of Foreign Affairs has urged the United States in a statement to fulfil President Biden’s promise not to separate from China or create obstacles to Chinese economic development.
