Biden to Sign Bill Curbing Chinese Tech InvestmentsBiden to Sign Bill Curbing Chinese Tech Investments
The executive order will focus on the development of AI, quantum computing and semiconductor technologies
July 31, 2023
President Joe Biden is set to sign an executive order limiting U.S. investments in Chinese tech.
The executive order is expected to come into effect by mid-August and will focus on the development of AI, quantum computing and semiconductor technologies. It will not, however, impact any existing investments.
The news comes amid ongoing concerns over China’s dominance in the tech market and the potential security and economic ramifications this could have for the U.S. The White House has, in response, been pushing legislation to limit the nation’s influence on the market, with a focus on the technologies expected to play a central role in major industries moving forward.
In July, the Senate backed legislation that would require U.S. firms to notify the Treasury when investing in Chinese technology deemed to be of national security concerns, such as satellite communications tech and microelectronics.
U.S. senators Bob Casey and John Cornyn also proposed new regulation to track U.S. investments in China as part of The Outbound Investment Transparency Act.
“The United States is at a crossroads; we can take control of our own future or we can let China eat our lunch,” said Casey.
“When American companies invest in technology like semiconductors or AI in countries like China and Russia, their capital, intellectual property and innovation can fall into the wrong hands and be weaponized against us,” said Cornyn. “This bill would increase the visibility of these investments, which will help the U.S. gather the information needed to better evaluate our national security vulnerabilities.”
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