U.S. set to ban certain investments in China regarding sensitive technologies

President Joe Biden has signed an executive order that restricts certain new U.S. investments in China, particularly in sensitive technology sectors such as semiconductors, microelectronics, quantum information technologies, and specific artificial intelligence systems. The order allows the U.S. Treasury Secretary to prohibit or limit investments in Chinese entities operating within these areas. The intention behind this move is to prevent American capital and expertise from aiding China in developing technologies that could potentially support its military advancements and threaten U.S. national security. The executive order targets various forms of investment, including private equity, venture capital, joint ventures, and greenfield investments.

The action is rooted in concerns about China’s growing technological capabilities and its potential implications for global security. Tensions between the U.S. and China, particularly in the tech sector, have escalated in recent years. The U.S. government aims to protect critical technologies and prevent their unintended use to strengthen China’s military capabilities. It also seeks to ensure that sensitive technology is not diverted away from U.S. national security interests.

The executive order is designed to address specific sectors within the broader technological landscape, and its impact is still unfolding. It is open for public input, indicating a willingness to consider feedback before implementing specific restrictions. The executive order follows consultations with U.S. allies and incorporates feedback from the Group of Seven (G7) nations, reflecting an attempt to build a cohesive approach to address these concerns.

China has expressed strong opposition to the order, indicating that it sees the move as harmful to economic cooperation and global trade exchanges. The Chinese government has warned against creating obstacles to economic recovery and damaging the international economic and trade order.

The order is part of a broader effort to manage the complex relationship between the U.S. and China, which includes economic, political, and security dimensions. While it is aimed at safeguarding U.S. interests, it also has implications for global economic dynamics, trade relationships, and technological competition. The focus on specific sectors like semiconductors highlights the strategic importance of certain technologies in modern warfare and defense capabilities.

The move to restrict investments in sensitive technology sectors represents one facet of the multifaceted U.S.-China relationship, and it will likely prompt further discussions about how to balance economic interests with national security concerns. As geopolitical tensions continue to shape international relations, particularly between these two global superpowers, strategic actions like this executive order will continue to evolve and influence the broader landscape of global technology, trade, and security.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Nippon Steel unveils $6B decarbonization plan to modernize Japan’s steel industry

Nippon Steel, Japan’s largest steelmaker, announced plans on Friday to invest approximately 870 billion yen ($6.05 billion) to install electric arc furnaces at three of its domestic production sites. The initiative marks a major strategic shift aimed at slashing carbon emissions in one of the world’s most polluting industrial sectors.

To support this transformation, the Japanese government will provide up to 251 billion yen ($1.75 billion) in subsidies through fiscal year 2029, reflecting Tokyo’s broader push to decarbonize heavy industry and meet its 2050 net-zero emissions target.

U.S. lawmaker calls to end all technology exports to China’s Huawei, SMIC

Representative Mike Gallagher, the chair of the House of Representatives’ committee on China, has called for a complete halt to technology exports to both Huawei and China’s leading semiconductor manufacturer, Semiconductor International Manufacturing Corp (SMIC). This demand comes on the heels of Huawei’s recent launch of the Mate 60 Pro smartphone, which reportedly incorporates a chip that experts believe may have been developed using a technology breakthrough by SMIC.

Maritime supply chains on edge as Trump eyes punitive port tariffs

Shipowners and charterers are beginning to revise leasing contracts in anticipation of potentially sweeping port fees targeting Chinese-built vessels under a forthcoming plan by the Trump administration. Though the Office of the U.S. Trade Representative (USTR) has yet to finalize or publish specific measures, industry players are already moving to shield themselves from the financial fallout.

In recent weeks, new provisions have been added to charter contracts that would shift the burden of potential U.S. port tariffs to charterers — those leasing the ships — if and when levies are introduced. These clauses resemble those used for handling cargo-related expenses and specify that any new duties, especially those levied on vessels tied to Chinese shipyards, would be paid in part or full by the charterer.

Stay informed

error: Content is protected !!