Biden seeks to limit US investment in Chinese tech firms

Washington, Aug 9 (EFE).- President Joe Biden signed Wednesday an executive order that would place restrictions on United States investments in Chinese companies working with “sensitive technologies critical to national security.”

The measure, which is subject to change before it takes effect in 2024, would apply to three sectors: semiconductors and microelectronics; quantum information technologies; and artificial intelligence.

Under the order, the Treasury secretary would have the authority to prohibit entire categories of transaction and to designate others as “notifiable.”

US individuals and firms engaging with Chinese entities in the notifiable categories would have to provide the Treasury Department with detailed information on each transaction.

“This program will seek to prevent foreign countries of concern from exploiting US investment in this narrow set of technologies that are critical to support their development of military, intelligence, surveillance, and cyber-enabled capabilities that risk US national security,” the White House said in a statement.

The announcement was accompanied by a Treasury Department notice soliciting public comment on the proposed rule.

Biden administration officials who briefed reporters on the executive order said that the final version of the rule could include the possibility of exposing investors who violate the regulation to criminal prosecution.

Also under consideration is an amendment that would allow exceptions to the restrictions under certain conditions, the officials said. EFE bpm/dr