According to sources familiar with internal discussions, President Joe Biden is reportedly preparing to sign an executive order by mid-August that will place limits on crucial technology investments in China. The proposed executive order forms part of the Biden administration’s overarching efforts to address concerns relating to national security risks and the economic rivalry between the United States and China.
Although specific details of the executive order remain undisclosed, it is expected to introduce measures to intensify scrutiny and regulation of U.S. technology investments in China. The order is likely to target sectors such as advanced manufacturing, artificial intelligence, biotechnology, and other emerging technologies, which are considered vital to national security and economic competitiveness.
The motivation behind this forthcoming executive order is rooted in the intricate dynamics between the two global superpowers. The United States has consistently raised apprehensions over issues like intellectual property theft, forced technology transfers, and unfair trade practices by Chinese companies. Additionally, the Biden administration seeks to bolster domestic technological capabilities and protect sensitive technologies from potentially falling into the hands of adversaries.
By implementing restrictions on technology investments in China, the executive order aims to safeguard critical U.S. technologies, mitigate the risk of intellectual property outflow, and ensure that American companies maintain a competitive edge. This measure aligns with the broader strategic approach of the Biden administration, characterized by a more assertive stance on China-related matters, while concurrently seeking international collaboration to tackle shared challenges.