Biden Signs Executive Order Banning Certain Investments in China

President Biden on Wednesday signed an executive order banning American investments in certain technologies in China, marking a significant escalation in the economic war against Beijing.

The order prohibits American venture capital and private equity firms from investing in three technology sectors in China: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.

The order restricting investment in China has been years in the making, as Biden administration officials had been at odds on how far the executive action should go.

A Biden administration official said the order also creates an outbound screening mechanism. The restrictions are being put in place under the guise of national security, and US officials insist they are not trying to hurt economically, only prevent China’s military from gaining access to US technology.