The White House will outline plans on Wednesday to restrict certain US investments in China’s sensitive technology sector, a government source said. The plans are aimed at preventing US capital and know-how from contributing to the development of technologies that could allow China to modernize militarily and pose a threat to US security.
According to the government source, US President Joe Biden is expected to issue an executive order restricting investment in sensitive technologies in China on Wednesday. Biden administration officials have stressed in recent months that any restrictions on US investment in China will be strictly defined.
Investments in semiconductors, quantum computing and AI targeted
The Biden administration is expected to target active investments such as American private equity, venture capital, and joint venture investments in China in semiconductors, quantum computing, and artificial intelligence. Most investments covered by the executive order will have to be notified to the US government, the source said. Certain transactions will be prohibited.
However, the decree should not enter into force immediately and provide for a consultation period to take into account the observations of the stakeholders in the sector before being finalized.
Source: BFM TV
