Prez Biden plans to restrict US investment in Chinese cutting-edge tech

The Joe Biden administration is mulling to curb US investment in critical Chinese technology industries that are crucial to modernising Chinas militaryThe proposed Treasury Department rules would prohibit certain US investments in Chinese companies that are developing semiconductors quantum computers and artificial intelligence systems The Biden administration is trying to restrict American financing from helping China develop advanced technology that could be used for weapons tracking government intelligence and surveillance The New York Times reportedThis proposal if put into action will further strain economic ties with Beijing at a time when trade tensions are risingThe proposal is expected to be finalized later this yearThis proposed rule advances our national security by preventing the many benefits certain US investments provide beyond just capital from supporting the development of sensitive technologies in countries that may use them to threaten our national security the New York Times cited Paul Rosen the Treasury Departments assistant secretary for investment securityEarlier President Biden signed an executive order calling for the investment ban which will largely affect venture capital and private equity firms that do business with Chinese companiesAs per the proposed restriction the investors are required to notify the Treasury Department about certain kinds of transactions and some types of investments are explicitly prohibitedIf it is implemented the Treasury Department will have the power to force a divestment and violations could be referred to the Justice Department for criminal prosecution it reportedThe rules apply to equity investments debt financing that could be converted to equity and to joint venturesEarlier in May US President Joe Biden has directed his Trade Representative to increase tariffs on USD 18 billion of imports from China including semiconductors solar cells batteries and critical minerals to protect American workers and businesses the White House said in a statementThe White House said that the decision has come in response to Chinas unfair trade practices and to counteract the resulting harmsChinas unfair trade practices concerning technology transfer intellectual property and innovation are threatening American businesses and workers China is also flooding global markets with artificially lowpriced exportsIn response to Chinas unfair trade practices and to counteract the resulting harms President Biden is directing his Trade Representative to increase tariffs under Section 301 of the Trade Act of 1974 on USD 18 billion of imports from China to protect American workers and businesses the White House statement readThe statement on hiked tariffs on imports from China also noted that the Chinese government has used unfair and nonmarket practices for too long nowChinas forced technology transfers and intellectual property theft have contributed to its control of 70 80 and even 90 percent of global production for the critical inputs necessary for our technologies infrastructure energy and health carecreating unacceptable risks to Americas supply chains and economic security the White House saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever