Photo: ASSOCIATED PRESS
‘New order focuses on semiconductors, quantum computing, and artificial intelligence.’
President Joe Biden has signed an executive order that imposes new restrictions on American investment in certain Chinese tech firms. The order aims to address national security concerns related to companies involved in “sensitive technologies” such as semiconductors, quantum computing, and artificial intelligence.
The executive order states that advancements in these sectors could lead to the development of advanced computational capabilities with significant national security risks. This includes the potential development of more sophisticated weapons systems, breaking of cryptographic codes, and other applications that could provide military advantages to certain countries.
The White House has emphasized that the move is narrowly targeted and specifically aims to prevent funding of entities engaged in activities related to these technology areas that pose the most acute national security risks. The Treasury Secretary will be responsible for enforcing the executive order.
This executive order, set to take effect in 2024, is part of the ongoing efforts by the US to limit the influence of Chinese tech firms. Both President Biden and his predecessor have imposed significant restrictions on Huawei. The White House has also restricted the sale of supercomputing technology to Chinese firms and sought to block China’s access to advanced chip-making equipment. Additionally, the Biden Administration has pressured ByteDance, the Chinese owner of TikTok, to sell the popular app.
For more information, you can read the full executive order here, and The Washington Post’s coverage on the topic here.
Previous actions taken by the US government to limit Chinese tech firms include restrictions on Huawei, limitations on the sale of supercomputing technology, and efforts to block China’s access to advanced chip-making equipment. The Biden Administration has also applied pressure on ByteDance to sell TikTok.