Biden hopes to tighten rules on US investment in China

Biden hopes to tighten rules on US investment in China

Wilmington, Del. (AP) – The Biden administration US companies are close to tightening rules on some foreign investments in China in an effort to limit its ability to acquire technology that could improve its military capabilities, according to a US official familiar with the discussions.

The soon-to-be-issued executive order from President Joe Biden would limit American investment in advanced technology that has national security applications — such as next-generation military capabilities that could help China improve the speed and accuracy of military decision-making, according to the official, who was not authorized to comment. and spoke on condition of anonymity.

The expected move is the latest effort by the White House to target China’s military and technology sectors at a time of increasingly fraught relations between the world’s two largest economies.

The Biden administration in October Export controls imposed to limit China’s ability to access advanced chips, which it says could be used to make weapons, violate human rights and improve the speed and accuracy of its military supplies.

The complicated relationship has become more tense in recent weeks after the United States last month shot down a Chinese spy balloon that crossed the country. The Biden administration has also released U.S. intelligence findings that raise concerns Beijing is supplying Russia with weapons for its ongoing war against Ukraine.

Tensions were on display as top diplomats from 20 industrialized and developing nations wrapped up a contentious meeting in New Delhi on Thursday. There is no consensus on the Ukraine war And concerns over China’s growing global influence dominated much of the discussion.

Meanwhile, China erupted again last week House Select Committee of the Chinese Communist Party This is after the first hearings were held to counter Beijing’s influence. Foreign Ministry spokesman Mao Ning called on its members to “abandon their ideological bias and zero-sum Cold War mentality.”

Administration officials are consulting with allies as they work to craft new rules on U.S. investments, according to the official.

The Wall Street Journal first reported on Saturday that the Treasury and Commerce departments delivered reports to lawmakers on Friday detailing plans for new regulatory measures to counter US foreign investment in advanced technology. The agencies said they expect to seek additional money for the investment screening program in the White House budget, which will be released March 9, according to the Journal.

A spokesman for the White House’s National Security Council declined to comment on the Treasury and Commerce report, but noted that administration officials have kept Congress informed of progress in developing a vision for foreign investment.

The move is expected to face pushback from US firms. Administration officials have tried to signal to the business community that while they are looking to test rules on U.S. investment in China, they are careful not to overcommunicate.

“One of the most important things that we can do, from my perspective, is that we draw a clear line between what is competition and what is national security because, fundamentally, my view is that the United States does well when we compete. Any country in the world with a level playing field,” Deputy Treasury Secretary Wali Adeyemo said at a recent Council on Foreign Relations event. “But we also want to be able to use the tools we have to protect the national security of the United States in those narrow areas where we see national security risks.”

A bipartisan group of lawmakers Last year, Biden urged China to establish a stricter screening system for foreign counterparty investment.

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