2023-08-10 05:29:00
Update (08/10/23) – JB
US President Joe Biden signed an executive order what prohibits the investment of American companies in the production of a series of technologies that China.
Alleging that the reason for this sanction is “national security”, Biden forwarded the text for approval to the US Congress, but the measure begins to take effect immediately.
As a result, technology companies in the United States cannot invest in the production of computer or smartphone chips, in quantum computing or in new Artificial Intelligence systems.
The government has yet to publish the details of the measure, but the proposal is already open to input from Congress and the public.
The fear does not affect current investments. That is, companies that already produce these technologies in China will not need to readjust, but new initiatives now depend on prior approval from the White House and the Department of Commerce.
In his speech, Biden said he was declaring a national emergency to deal with the threat from China.
The country has invested in sensitive technologies and critical products to enhance its military, intelligence, surveillance and cyberwarfare capabilities.
China’s Ministry of Commerce said the order harmed the global economy and that the country had the right to retaliate against the US action.
Original text (08/01/23)
US President Joe Biden is expected to sign an executive order seeking to contain investments by US companies in technology production in China.
The information was confirmed by more than one source with access to the backstage of the White House, and the order should focus on vetoing three key areas: semiconductors, Artificial Intelligence and quantum computing.
Still, the measure is not expected to affect existing investments and will only target specific future transactions. In other words, the government should start inspecting the investment of national companies in China, and may veto some initiatives.
Although details of the executive order have not yet been released, market analysts say the measure is likely to make the scenario even more obscure in the relationship between China and the United States.
This is because Beijing has already threatened to retaliate again and this leaves everything very uncertain, since no one knows where the Chinese government can aim. Before, they vetoed the purchase of Micron chips, but surprised the world by restricting the export of rare earths essential for chip production.
Therefore, the expectation is that the next Chinese retaliation will be even more serious, something that has worried the global semiconductor industry.
In any case, the Biden administration justifies the new sanctions by claiming that China has been using US technologies to produce weapons that can be used to invade Taiwan.
1691667260
#Biden #signs #order #banning #technology #investment #China