US Restricts Advanced Technology Investments in China... Government Expects Limited Domestic Impact

The Scope of Application is 'Advanced Semiconductors, AI, and Quantum Computing'

On the 9th (local time), the White House announced an executive order restricting investments by Americans in countries of concern to prevent such investments in advanced technology sectors from enhancing the military and intelligence capabilities of these countries, thereby threatening the security of the United States and its allies and partners.

According to the Ministry of Trade, Industry and Energy, the executive order applies when Americans invest in companies related to advanced semiconductor, artificial intelligence, and quantum computing industrial technologies in countries of concern, specifically in detailed technology fields to be defined later by regulations from the U.S. Department of the Treasury. Investment methods covered include private equity, venture capital, mergers and acquisitions (M&A), greenfield investments, and joint ventures. Depending on the specific technology field, the investments are categorized as either prohibited or subject to prior notification.

The U.S. overseas investment restriction system applies to future investments and is limited to Americans or U.S. entities. A government official stated, "The impact on domestic industries is expected to be limited," and added, "The government plans to closely analyze the effects on our economy and, if necessary based on the analysis, submit opinions from our government and industry to the U.S. government."

U.S. President Joe Biden. (File photo) [Image source=Yonhap News]

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