US President Joe Biden is introducing restrictions on US companies’ ability to invest in certain types of Chinese technology.
US President Joe Biden together with Chinese President Xi Jinping in connection with the G20 summit in Bali last autumn. Photo: Alex Brandon / AP Published: Published:
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Biden signed the new decree on Wednesday evening, which several media in the previous days had reported was on the way.
The arrows point downwards on the stock exchanges in China on Thursday morning, and the Hong Kong stock exchange experienced the heaviest fall among the central stock exchanges in Asia and the Pacific region.
Elsewhere in the region, there is an increase on the Tokyo stock exchange, but a decrease in both South Korea and Singapore.
This is how it looks at 6 o’clock Norwegian time:
Nikkei 225 in Tokyo rises 0.48 percentHang Seng in Hong Kong falls 0.95 percentShanghai Composite falls 0.26 percentKospi in Seoul falls 0.40 percentFTSE Straits Times in Singapore falls 0.22 percentASX 200 in Sydney rises 0.13 percent
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In the US, there was a decline on Wall Street on Wednesday evening, with technology shares falling. The stock market fall came ahead of the US inflation figures, which will be released before Wall Street opens this afternoon.
Blame it on national security
With the new decree, President Biden aims to regulate US investments in China within so-called “sensitive technology” that has significance for the military, intelligence, surveillance and cyber capabilities.
The decree limits or virtually prohibits certain types of US investment in Chinese technology companies that develop microchips and microelectronics, computer chips, quantum data and artificial intelligence.
It is the consideration of national security that the American authorities point to as the reason for introducing the restrictions.
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The decree also states that federal authorities in the United States must be notified when American companies want to invest in other parts of China’s technology sector.
China’s embassy in Washington was quick to comment on Biden’s decision. China is very disappointed that certain forms of American investment in Chinese technology are prohibited, a spokesman for the embassy said on Thursday night Norwegian time.
– The 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 determined way, says spokesman Liu Pengyu.
2023-08-10 04:08:52
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