- Biden signs order to ban certain tech investments in China

President Joe Biden signed an executive order on Wednesday that will impose restrictions on certain U.S. investments in sensitive technology in China. The order specifically targets investments in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. Biden declared a national emergency in order to address the threat posed by countries like China in these critical technology areas. The move aims to prevent American capital and expertise from supporting China’s military modernization and undermining U.S. national security. The order focuses on private equity, venture capital, joint venture, and greenfield investments. Most investments covered by the order will require government notification, while some transactions will be prohibited. The order is expected to be implemented next year after a period of public comment and feedback. The Biden administration has engaged with U.S. allies and partners in developing these restrictions and will continue to coordinate closely with them. However, critics argue that the order does not go far enough and fails to include existing technology investments and other sectors deemed critical by China. The regulations concerning artificial intelligence and quantum computing are still being developed, and potential exemptions related to universities and research are being considered.