Biden Signs Executive Order Blocking Americans From Investing in Chinese Tech

Biden Signs Executive Order Blocking Americans From Investing in Chinese Tech

( – When a country commits an egregious act, the US State Department and White House can label it a country of concern. It’s a designation that allows the administration to start issuing restrictions. In China’s case, the country has been given the designation for its religious and human rights abuses in the past.

Now, President Joe Biden has once again labeled the nation as a country of concern and started taking steps to prevent Americans from investing in some of the nation’s technology.

Allegations Against China

On August 9, Biden issued an executive order declaring a national emergency and stating that his administration has determined China is engaged in activities and investments that “support advancements in sensitive technologies” critical to its military. Further, the president claimed the country has eliminated barriers between its defense and civilian sectors by “acquiring and diverting the world’s cutting-edge technologies” in order to achieve “military dominance.” The president stated that American outbound investments are helping those efforts.

The advancements threaten US national security because they allow for the “development of more sophisticated weapons systems, breaking of cryptographic codes,” and other things that can help the Chinese military.

Executive Order

To address the national emergency, Biden has ordered the Treasury and Commerce Secretaries to notify the public that the administration is limiting investments in semiconductors, quantum information technologies, microelectronics, and AI. Anyone who has invested in the categories must notify the Treasury Department about each transaction.

The Treasury Department issued a press release saying the EO is “narrowly targeted” so the administration can protect America’s national security while maintaining its commitment to open investment. The department said China has a long-term strategy to exploit US investments to advance its goal of producing “sensitive technologies critical to military modernization.”

The rule will go into effect after a 45-day comment period during which Americans can express their opinions on the topic.

A Battle

For years, the US government has accused the Chinese of stealing American technology and research in an attempt to advance its own military goals. The Chinese government has also been accused of taking military technology. In 2019, the nation stole designs for American weapons. Then, in March, reports indicated the country allegedly stole military technology for its J-20 fighter.

Using American investments to further its ambitious goals is just the latest iteration in a tech battle that has been going on for years. The Biden Administration is trying to slow the Chinese down.

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