White House Announces Details of U.S. Investment Ban in Technology in China

On Wednesday, August 9, the White House intends to announce further details regarding the ban on certain U.S. investments in sensitive technologies in China. According to Reuters, a senior official stated that the aim of this plan is to prevent U.S. capital and expertise from supporting the development of technologies that could aid in the modernization of China's military and threaten U.S. national security. It is expected that President Joe Biden will soon issue an executive order to 'review foreign investments in sensitive technologies in China.' This order is anticipated to be issued on Wednesday. The White House has not yet commented on this matter. Biden administration officials have previously emphasized that any restrictions on U.S. investments in China will be 'limited.' Jake Sullivan, the U.S. National Security Advisor, stated in April that these are appropriate measures and, contrary to what Beijing claims, it is not a 'technology blockade.' Additionally, Gina Raimondo, the U.S. Secretary of Commerce, mentioned in March that the government does not want to act 'too broadly,' as excessive measures could harm American workers and the economy. The government is expected to target active investments such as U.S. private equity, venture capital, and joint ventures in semiconductors, quantum computing, and artificial intelligence in China. Earlier, Ursula von der Leyen, President of the European Commission, warned that the European Union must be prepared to protect its trade and investments against China, which may use them for its security and military purposes.