Beijing has announced that the United States is looking for ways to block American investments in China. The Asian nation accused Washington of misusing the “national security concept” by politicizing trade issues.
The United States has issued the latest bans in China for some tech companies. As a result, some of these businesses have had to limit their investments in Chinese land. About this, Beijing has reported they are are dissapointed about this decision and even told Joe Biden’s administration that they will continue to unconditionally protect their rights and interests.
The Foreign Minister from Beijing has said these measures are an example of economic coercion and technological harassment. On the same line, Beijing has stated that Biden has not kept his word and it will affect some sectors due to the importance they have in the development of military, survelliance, intelligence and cybernetic fields.
Even though some exceptions are expected, the order will still ban some deals and require invetors to notify the American government about their plans on China. In addition, the Treasury stated that “certain transactions, including potentially those in publicly traded instruments and intracompany transfers from U.S. parents to subsidiaries.”
This has been one of the most significant actions taken by Joe Biden’s administration, after several months discussing with G7 members. With this move, the United States should be preventing any tech company from investing in the three key sectors of China’s economy. The measure is expected to come into effect next year.