Biden administration restricts some US investment in Chinese technology | Forexlive
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The Biden administration unveiled an executive order to regulate US investment in a narrow set of technologies in China, according to a Reuters report.
The order will focus on semiconductors, quantum computing and certain artificial intelligence.
The White House is trying to spin it as something that’s focused on the military not economic competition but that’s ridiculous. Nearly all innovation in the future will be done by the people with the most-powerful computers. It’s something I’ve written about previously.
In any case, the move was rumored and some congressmen even wanted to expand it to all US investment in China. The report says the US is contemplating exemptions for investments in publicly-traded securities, which opens up a gigantic loophole.
In any case, I don’t think China is going to be short of capital for investments in those sectors. If anything, the US moves will only make China more determined.