New York, August 9.- US President Joe Biden signed an executive order yesterday, Wednesday, that will block US high-tech investments in China, even though Washington has repeatedly indicated that it has no interest in "decoupling" from the Asian country.
The order, which designates China as a "country of concern," aims to limit U.S. investments in three categories of national security technologies: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems, according to the U.S. Treasury Department.
The order also requires U.S. entrepreneurs and other investors to notify the Treasury of their potential investments in Chinese companies in the aforementioned sectors.
The regulations are expected to take effect after a 45-day comment period.
After months of preparation, the order is widely seen as another US attempt to suppress Chinese technological progress under the guise of national security, as the United States ramps up its high-tech rivalry with China.
In response, China's Ministry of Commerce said Thursday that "the United States has restricted investment by its companies, engaging in 'decoupling' of the investment sector under the pretext of 'risk elimination,' which is a complete departure from the basic principles of market economy and fair competition that the United States has long claimed to uphold."
"It has undermined the international trade order and seriously disrupted the security of global industrial and supply chains. China is deeply concerned about this and reserves the right to take action," the ministry continued.
US technology and financial companies have expressed concern that such a measure would have a chilling effect on all cross-border investment activities in China.
