A researcher works inside a superconducting quantum computing laboratory at Beijing Academy of Quantum Information Sciences (BAQIS) on February 26, 2021 in Beijing, China.
VCG | Visual China Group | Getty Images
WASHINGTON — President Joe Biden signed an executive order on Wednesday aimed toward regulating latest U.S. investments and expertise that supports Chinese development of sensitive technologies.
The brand new measure, which is predicted to be implemented next yr, targets investment in semiconductors and microelectronics, quantum computing and certain artificial intelligence capabilities.
Biden warned in the chief order that certain American investments may contribute to “the event of sensitive technologies and products in countries that develop them to counter United States and allied capabilities.”
“I find that countries of concern are engaged in comprehensive, long-term strategies that direct, facilitate, or otherwise support advancements in sensitive technologies and products which might be critical to such countries’ military, intelligence, surveillance, or cyber-enabled capabilities,” the president added.
The manager order may even require outbound U.S. investors to offer notifications to the Treasury Department.
Treasury Secretary Janet Yellen is basically placed on the helm of delivering on this executive order. The measure calls on Yellen to “define sensitive technologies and products in these categories for purposes of the prohibition and the notification requirement.”
Yellen can be tasked with coordinating motion with Secretary of Commerce Gina Raimondo, Secretary of State Antony Blinken, Secretary of Defense Lloyd Austin, Secretary of Energy Jennifer Granholm in addition to the Director of National Intelligence Avril Haines.
The Chinese Embassy in Washington, D.C., didn’t immediately reply to CNBC’s request for comment.
Senior administration officials, who spoke on the condition of anonymity ahead of the chief order, said the brand new measure is tailored in order to not stifle business between the world’s two largest economies.
“We recognize the cross-border investment flows have long contributed to U.S. economic vitality. This executive order protects our national security interests in a narrowly targeted manner while maintaining our long-standing commitment to open investment,” one senior administration official said on a call.
A second official, who also spoke on the condition of anonymity, said the measure was discussed with allies, bipartisan lawmakers and industry leaders. The official added that the brand new efforts also address intangible investment advantages like introductions to experts and other networking opportunities.
“China doesn’t need our money, they seem to be a net capital exporter. So the thing we’re trying to stop shouldn’t be money going into China overall, because they’ve loads of money. The thing they do not have is the know-how,” the official said.
The official added that based on previous discussions the Biden administration expects allies to place forth similar restrictions.
