The United States will soon control investment in China on a large scale
Economic vertical and horizontal
09.08.2023
The White House will announce on August 9 a plan to ban U.S. capital from investing in China’s sensitive technology sectors. Reuters expects it to involve industries such as semiconductors, quantum computing, and artificial intelligence. The New York Times reported that the White House will also stipulate that most other US investment projects in China also have reporting obligations to the government.
(Deutsche Welle Chinese Network) Reuters quoted a high-level government source as saying that the White House will announce President Biden’s executive order on August 9, but the White House still refused to comment on the matter on August 8. A few days ago, Reuters reported thatPresident Biden’s investment restrictions on China will be announced early this week。
Inside sources told Reuters,Executive Orders to be Announced by President BidenWill target private equity, venture capital and joint ventures in the USInvest in China’s semiconductor, quantum computing, and artificial intelligence fields. At that time, most investment projects covered by the executive order will need to be reported to the US government. The sources also said certain deals would be barred.
The “New York Times” reported on August 8 that the Biden administration plans to require the implementation of reporting obligations for investment in China in a wider range of areas, which will allow the US government to better graspBetween America and ChinaThe status of the financial transaction.
Cordell Hull, a former U.S. undersecretary of commerce, said the new executive order would fill a gap in the current U.S. system. “We have all kinds of bans on technology exports, and we have restrictions on foreign investment in the United States. The new rules will help fill the gap in regulating capital and technology, so that the government can understand where this capital is going.”
Sullivan: Tailor-made, but not technically blocked
How to determine the military category?
Reuters also learned from other sources earlier that the new restrictions on investment in China’s semiconductor industry will be in line with the export control regulations to China that are expected to be promulgated by the US Department of Commerce in October this year.
Emily Benson, director of the trade and technology program at the Center for Strategic and International Studies (CSIS), estimates that the new rules will prohibit investment in artificial intelligence projects that may be used by the military, while other types ofartificial intelligence projectYou only need to comply with the reporting obligations for investment in China. Benson said it is the U.S. government’s responsibility to define what AI technologies are considered military.
The new executive order is not expected to take effect immediately, but will seek industry and public comments first. The U.S. government has held meetings with stakeholders and consultations with allies. In addition, U.S. Treasury Secretary Janet Yellen also discussed the issue with Chinese officials when she visited China in July this year. She briefed the media at the end of her visit that the potential restrictions were highly targeted, “clearly targeting several areas where we have specific national security concerns.” Yellen also said the executive order would be implemented in a transparent manner. promulgated, the public will be able to participate in the development of the rules.
U.S. National Security Adviser Jake Sullivan also said in April this year that export controls against China are highly targeted “tailor-made measures, not a comprehensive technology blockade as Beijing calls it.” Earlier, Commerce Secretary Gina Raimondo has said the administration “doesn’t want to be too broad … anything that is too broad hurts American workers and the economy.”
Liu Pengyu, a spokesman for the Chinese embassy in Washington, said that the United States “habitually politicizes technology and economic and trade issues, and uses them as tools and weapons in the name of national security.” He stressed that China will pay close attention to the development of the situation and resolutely defend its own rights and interests.
Europe is also considering strengthening the control over investment projects in China.European Commission President Ursula von der Leyen first proposed the concept of “de-risking” in a speech on China’s strategic issues on March 30 this year.which mentions that “more stringent investment rules in China must be adopted to prevent the capital and expertise of European companies from helping to improve the military and intelligence capabilities of systemic competitors.”
(Reuters, New York Times)
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2023-08-09 10:43:34
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