The new rules, which Politico says will soon be introduced by an executive order from US President Joe Biden, will require companies to notify governments of new investments in Chinese tech industries, and a number of transactions, such as investments in microchip companies, will be banned completely under the ban.
While such action poses serious economic risks to both countries, anti-China sentiment is more rampant than ever among U.S. lawmakers amid the February balloon incident.
Relations between the United States and China are not enjoying the best of times after previous US President Donald Trump nearly sparked a trade war between the two largest economies. At that time, Washington was also trying to develop a legislative framework to limit US investment in dual-use technologies.
The visit to Taiwan by Speaker of the House of Representatives Nancy Pelosi did not add friendliness.
Meanwhile, at the G-20 summit in Indonesia last November, Joe Biden and Xi Jinping agreed to change the rhetoric and normalize bilateral relations, although no practical steps in this direction are yet in sight. .
Last year, Politico recalls, US lawmakers considered controlling investment in five Chinese industries: microchip production, artificial intelligence, quantum computers, biotechnology and clean energy. Apparently, the last two will not be touched for the moment.
“When Congress almost passed the Foreign Investment Control Act, which was supposed to supplement the CHIPS Act, it was only intended to require notification of such transactions,” the source told Politico. “We believe that such a regime must necessarily be complemented by some set of targeted bans,” he added.
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