Biden administration to tighten rules on US investment in China

The US President’s Government Joe Biden is near tighten the rules for some of the investments made by American companies abroadan attempt to limit China’s ability acquire technology who can enhance their military prowess, according to a US official briefed on the deliberations.

The executive order Biden will soon issue restrict U.S. investment in cutting-edge technologies that have national security applicationssuch as cutting-edge military capabilities that could help China improve the speed and accuracy of military decision-making, according to the official, who spoke on condition of anonymity.

The planned move marks the White House’s latest effort to specifically target China’s military and technology sectors at a time of heightened tensions between the world’s two largest economies.

In October, the Biden administration imposed export controls to limit China’s ability to access advanced microprocessors which he says can be used to make weapons, violate human rights and improve the speed and accuracy of Beijing’s military logistics.

He the wall street journal reported for the first time on Saturday that the Treasury and Commerce Departments each delivered briefs to lawmakers on Friday detailing plans for a new regulatory system for U.S. foreign investment in advanced technology. The agencies said they hoped to secure additional funding for the White House Budget Investment Control Program, which is scheduled for release March 9, according to the Journal.

A spokesperson for the White House National Security Council declined to comment on the Treasury and trade reports, but said administration officials are keeping Congress informed of their progress in crafting a approach to foreign investment. .

The planned move will no doubt face opposition from American businesses. Administration officials tried to signal to the business community that while they were reviewing rules on U.S. investment in China, they were aware they should not go overboard.

“One of the most important things we can do, from my perspective, is make sure we draw clear lines between what is competition and what is national security because basically I think the United States does well when we compete on equal footing with any country in the world,” Treasury Under Secretary Wally Adeyemo said at a recent event. of the Council on Foreign Relations. “But we also want, in narrow spaces where we see a national security risk, to be able to use the tools at our disposal to protect the national security of the United States of America.”

Last year, a bipartisan group of lawmakers urged Biden to establish a stricter system of screening investments in foreign adversaries, among which China ranks high.

The complicated relationship between the United States and China has become more strained in recent weeks after the US government shot down a Chinese spy balloon that was flying over US territory last month.

The Biden administration has also released disturbing findings from US intelligence, saying Beijing is considering supplying Russia with weapons for its war in Ukraine.

Tensions were on full display as the heads of diplomacy from the Group of 20 industrialized and developing countries wrapped up a contentious meeting in New Delhi on Thursday with no consensus on the war in Ukraine, with concerns over China’s growing global influence having dominated much of the conversation. .

(With information from AP/By Aamer Madhani and Fatima Hussein)

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