The President of the United States, Joe Biden, has signed an executive order to restrict U.S.-based investments in People’s Republic of China.
The move will prohibit high-tech U.S.-based investments in some sensitive technologies in China. The restriction is reportedly imposed on computer chips, quantum information technologies, micro electronics, and artificial intelligence.
On Wednesday, Biden signed the order. He directed the Department of the Treasury, the finance department of the federal government of the United States, to regulate U.S. investments in Chinese technology.
According to reports, the order was aimed at regulating investments in certain “countries of concern,” especially China, Hong Kong and Macau.
According to U.S. officials, the order was signed to prevent national security risks by regulating investments in Chinese companies.
Before signing the executive order, the Biden administration consulted with allies and industry. Reportedly, it would take some time before the moves take effect.
J. Philip Ludvigson, who previously worked at the Director for Monitoring & Enforcement within the U.S. Department of the Treasury’s Office of Investment Security, said that the order could be expanded over time.
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The former Treasury official said, “The executive order issued today really represents the start of a conversation between the U.S. government and industry regarding the details of the ultimate screening regime.”
Raja Krishnamoorthi, D-Ill., an American businessman, politician, and attorney serving as the U.S. representative for Illinois’s 8th congressional district, called the executive order an “essential step forward.”
According to experts, the order could take many months. The Treasury department also said that it was considering notification requirements for U.S.-based investments in Chinese companies.
Earlier, Janet Yellen, United States Secretary of the Treasury, talked about the imposition of export controls on certain US microchips that were used in artificial intelligence. In July, she also concluded a four-day trip to China.
