Joe Biden has declared a prohibition on US investments into critical high-tech sectors in China, a decision Beijing has labelled as “anti-globalization.”
On Wednesday, the President enacted an executive order limiting financial support for areas like advanced computer chips, quantum computing, and artificial intelligence within China, the world’s second-largest economy.
These new regulations, which have been long-awaited, are set to come into effect next year.
There are indications that Rishi Sunak may introduce a comparable ban. During a White House visit in June, Sunak assured Biden that the UK would act decisively against any possibility that British funds and know-how might assist rival nations in forming a military or intelligence threat, as reported by the Financial Times.
In a message to Congressional heads, Biden stated, “Open investment is a foundation of US economic strategy and offers significant advantages to the US. However, specific US investments might hasten the development of sensitive technologies in nations that aim to challenge US and allied competencies.”
China’s Ministry of Commerce voiced “grave reservations” about the decision in a statement released early Thursday and mentioned its right to possible counteractions.
Following the news, Asian markets saw declines, with Hong Kong stocks dropping by 1% and Shanghai’s index falling by 0.2%.”
