The president signed an executive order on Wednesday that limits or nearly bans certain types of US investment in Chinese technology companies developing microchips and microelectronics, quantum data and artificial intelligence.
It is America’s national security considerations that are behind it, not financial interests, said sources in the Biden administration.
The aim is reportedly to prevent US investment from helping strengthen China’s military.
The Chinese Embassy in Washington was quick to criticize Biden’s decision.
– Restrictions could seriously undermine the interests of Chinese and American companies and their investors. China will follow the situation closely and protect our rights and interests in a prescribed manner, said embassy spokesperson Liu Pengyu.
At the same time, China’s Foreign Ministry claims that the US is engaged in “anti-globalization”.
The new US restrictions are mostly aimed at Chinese companies developing software used to develop computer chips.
In recent years, the United States has taken several steps to reduce China’s ability to develop new advanced technologies.
Extensive restrictions on the export of high-end computer chips to China introduced by the Biden administration last year.
When Donald Trump became president of the United States, he was in a trade war with China. The successor that Biden has maintained high tariffs imposed by Trump.
China takes sides introduced ban on the use of memory chips from American manufacturer Micron in critical infrastructure projects.
New US restrictions on investment in China are expected to take effect next year.
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