"China's Advanced Technology Investment Funds Blocked... US Nearly Completes Preparation of Restriction Measures"

"Announcement of Restriction Measures Expected Within Next 2 Months"
Considering Opposition in the US, Scope of Restrictions Under Deliberation

[Asia Economy Reporter Jeong Hyunjin] The New York Times (NYT) reported on the 9th (local time) that the Biden administration in the United States is expected to announce investment restrictions soon in fields such as China's quantum computing and cutting-edge semiconductors to slow down the pace of advanced technology development.

According to multiple sources cited by the NYT, the Biden administration has been preparing policies for several months to block American companies' investments in China, and most preparations have been completed, with the announcement expected within the next two months. Within the U.S. government, there have been deliberations since last year regarding the scope of investment restrictions, and discussions with companies about the potential impact have also taken place.

[Image source=Reuters Yonhap News]

According to the report, although the U.S. government has not yet finalized the policy details, it plans to issue an executive order restricting investments in sensitive areas including quantum computing, cutting-edge semiconductors, and artificial intelligence (AI), along with defense and surveillance applications. Initially, investments in China's biotechnology sector were also considered for inclusion, but this sector is reportedly excluded for now.

According to financial information provider Dealogic, U.S. companies spent $11 billion last year acquiring or investing in Chinese companies. While this amount is relatively small compared to the total U.S. corporate investment of $1.5 trillion, it is evaluated that these funds have helped the growth of Chinese venture companies and others.

Within the United States, voices opposing the government's investment restrictions on China are also emerging. Centered around the U.S. Chamber of Commerce and the U.S.-China Business Council, concerns are raised that if these restrictions, which do not apply to other countries, are imposed only on American companies, U.S. companies could suffer damage. In response, the Biden administration is reportedly engaging with allied governments to encourage the adoption of similar measures not only in the U.S. but also in the European Union (EU) and others.

The NYT also reported that Bill Ford, CEO of investment firm General Atlantic, personally met with U.S. Secretary of Commerce Gina Raimondo to express concerns related to this matter. General Atlantic has invested approximately $7 billion in China since 2000.

Claire Chu, senior analyst for China at defense intelligence company Janes, stated that until now, the U.S. government has hardly controlled the flow of funds from the U.S. to China, and she expects the new policy to create government oversight authority over such transactions.

This content was produced with the assistance of AI translation services.