Biden Limits US Tech Investments in China Citing National Security
President Biden signs an executive order restricting US investments in Chinese semiconductors, quantum computing, and AI to protect national security. China condemns the move as an attempt to maintain technology hegemony.
President Joe Biden signs an executive order that restricts certain US investments in sensitive Chinese technology sectors. The order specifically targets Chinese entities involved in semiconductors, quantum information technologies, and artificial intelligence. Biden declares a national emergency to address the threat of foreign advancements in technologies critical to military, intelligence, and cyber capabilities.
The new rules authorize the US Treasury Secretary to prohibit or strictly limit American financial backing in these three targeted industries. Senior administration officials emphasize that the scope remains narrow and stems directly from national security goals rather than broad economic interests. The measure seeks to prevent US capital from helping China upgrade its military while preserving general trade between the two nations.
China strongly accuses the Biden administration of pursuing technology hegemony and demands the immediate repeal of these restrictions. Despite this diplomatic friction, US officials insist they have no intention of fully decoupling the American economy from China. The two largest global economies remain deeply intertwined even as they navigate escalating geopolitical competition and ongoing technological disputes.