US approves resolution restricting investment in Chinese tech firms

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US President Joe Biden has approved an executive order restricting investment in Chinese technology companies. This includes companies working in semiconductors, quantum computing, and artificial intelligence.

US approves resolution restricting investment in Chinese tech firms

The "chip and semiconductor technology" dispute between the United States (US) and China continues. While China is one of the leading actors in semiconductor production, the US is trying to strengthen its position against China with both restrictions and investment decisions.

With a law passed in recent months, it was announced that grants would be provided to chip technology companies that would produce in the US and that agreements with Chinese companies would be restricted. Now there is a new restriction decision for Chinese technology companies.

US President Joe Biden has signed an executive order that will restrict investment in certain Chinese technology companies. The decision is described as a step towards ensuring the national security of companies developing 'sensitive technologies' including semiconductors, quantum computing, and artificial intelligence.

The White House said it aims to block funding to 'organizations engaged in certain activities related to those areas of technology that pose the most severe national security risks'.

US RESTRICTIONS ON CHINA CONTINUE

According to the Washington Post, the responsibility for implementing the executive order will fall to the Treasury Secretary. The decision, which will not take effect until 2024, is not the first time in recent years that the US has sought to limit the influence of Chinese technology firms.

Biden had imposed harsh restrictions and embargoes against Huawei, the China-based smartphone manufacturer and once considered Apple's biggest competitor. The White House also restricted the export of supercomputing technology to Chinese firms. Regulations are also being made to block China's access to advanced chip manufacturing equipment. The Biden administration is also pressuring ByteDance, the Chinese owner of the popular social media app TikTok.

Source: Engadget

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