"China Criticizes Biden's Restriction on U.S. Tech Investment Abroad"

China Expresses Concern Over Biden's Executive Order Curbing U.S. Tech Investment

China has voiced strong objections to President Joe Biden's recent executive order that restricts U.S. investment in technology in certain countries. The move, which is part of the escalating global competition for technological dominance, has been met with criticism but has not yet prompted any immediate countermeasures from China.

China's Response to the Executive Order

The Chinese Commerce Ministry issued a firm statement in the early hours of Thursday in Asia, just a few hours after Biden signed the order. The order targets "countries of concern" based on national security considerations. "China expresses its grave concern and reserves the right to implement measures," the Chinese Commerce Ministry stated, according to a CNBC translation.

Implications of the Executive Order

Biden's order is not an outright ban but aims to limit U.S. investment and expertise in specific technology sectors in China, Hong Kong, and Macao. These sectors include semiconductors and microelectronics, quantum computing, and certain artificial intelligence capabilities. "This seriously deviates from the market economy and fair competition principles that the U.S. has always advocated," the Chinese Ministry of Commerce added. "It affects the normal operation and decision-making of enterprises, undermines the international economic and trade order, and seriously disrupts the security of the global industrial and supply chains."

Previous U.S. Measures and Assurances

In October, the U.S. introduced comprehensive rules aimed at halting the export of crucial chips and semiconductor tools to China. The U.S. also lobbied major chipmaking nations such as Japan and the Netherlands to follow suit. However, during her visit to Beijing in July, U.S. Treasury Secretary Janet Yellen assured her Chinese counterparts that any restrictions on U.S. outbound investments would be "transparent" and "very narrowly targeted."

Biden's Executive Order and the Outbound Investment Transparency Act

The language used in Biden's executive order bears a resemblance to a watered-down version of the initial Outbound Investment Transparency Act recently introduced by the Senate. Instead of an outright ban, the revised wording requires U.S. firms to notify the Treasury when investing in advanced Chinese technology due to national security concerns. In conclusion, as this story continues to develop, it's clear that Biden's executive order marks a significant shift in U.S. policy towards tech investment overseas, particularly in China. The impact of this move on the global technology landscape and U.S.-China relations will be closely watched in the coming days and weeks.

Impact on New Businesses: A Hot Take

Biden's executive order limiting U.S. tech investment overseas, particularly in China, could have significant implications for new businesses. This move could potentially alter the landscape of global technology trade and investment, affecting both established firms and startups.

Investment Limitations and Market Access

For new businesses in the tech sector, this order could limit their access to foreign markets and resources. This could stifle their growth potential and competitiveness, particularly if they rely on overseas investment or partnerships.

Supply Chain Disruptions

The order could also disrupt global supply chains, affecting businesses that depend on Chinese technology or components. This could lead to increased costs, delivery delays, and other operational challenges.

Policy Uncertainty and Business Strategy

The policy uncertainty resulting from this order could also complicate business planning and strategy. Businesses must now navigate a more complex regulatory environment, which could affect their investment decisions and risk management strategies.

Conclusion

In conclusion, while Biden's executive order is primarily a geopolitical move, it could have far-reaching implications for new businesses. As this story continues to unfold, businesses must stay informed and agile, ready to adapt their strategies to the changing global tech investment landscape. Article First Published at: https://www.cnbc.com/2023/08/10/china-slams-biden-order-limiting-us-overseas-technology-investment.html Brought to you by ChatGPT for www.BusinessFormation.io