Paccording to agency sources, Biden intends to create a system in the United States that will allow the government to directly block investments in China’s technology sector The administration of US President Joe Biden is considering taking measures that will limit American investment in Chinese technology companies. This is reported by Bloomberg with reference to sources. According to one of the agency’s interlocutors, the president may sign a corresponding decree in the coming months. It is possible that separate steps will be taken in relation to the TikTok social network. The Ministry of Commerce, according to the source, may impose additional restrictions on chips used for artificial intelligence systems. The White House is also discussing legislation with Congress that would require companies to disclose information about possible investments in certain sectors of the Chinese economy in advance, another source added. In addition, the creation of a system that will allow the government to block investments directly is being discussed, but a final decision has not been made at the moment.
Bloomberg notes that before that, the US had a more “soft” policy towards China’s technology sector. The exception was the semiconductor industry and companies such as Huawei and Semiconductor, which are accused of threatening US national security.
Last week, the US government informed the American company Nvidia about the introduction of new export licenses for China and Russia: now its products are prohibited from being sold to these countries. According to the new licensing requirements, restrictions apply to GPU-based computing accelerators (graphics processing unit, GPU) that meet certain performance criteria, in particular products of the A100 and H100 series. Such models are used to work with artificial intelligence and increase computing performance at times.
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As stated in a document on the website of the U.S. Securities and Exchange Commission (SEC), thus the U.S. authorities want to eliminate the risk that products covered by the export license may be used or redirected for “military end-use” in China and Russia.
Former US President Donald Trump signed a decree banning investments of American funds in Chinese companies in November 2020. Trump banned investments in 31 companies, in particular Huawei, China Mobile, China Telecom and China Railway Construction Corporation. In the last days of the presidency, Trump added nine more companies to the list, among which was Xiaomi.
Biden later expanded the list to 59 companies. The list included, among others, China National Nuclear Corporation (CNNC), China State Military Industrial Company (CASIC) and China Aerospace Science and Technology Corporation (CASC).
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