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White House plans to restrict some USA investments in China, Big Breaking

According to a reliable senior government source, the White House is set to unveil its strategy on Wednesday regarding the prohibition of certain U.S. investments in sensitive technological domains within China. Additionally, it will mandate that the government be informed about other investment activities.

The primary objective of these plans is to safeguard against the utilization of U.S. capital and expertise in the advancement of technologies that could potentially bolster China’s military modernization efforts and pose a threat to U.S. national security.

In a report issued on Friday, Reuters had indicated that President Joe Biden was on the verge of issuing a long-awaited executive order this week, which would establish a screening process for outbound investments involving sensitive technologies destined for China.

The senior government source has confirmed that the release of this executive order is expected to take place on Wednesday. However, the White House declined to provide any comment on Tuesday.

Officials from the Biden administration have consistently emphasized that any limitations on U.S. investment in China will be precisely targeted and focused.

National Security Adviser Jake Sullivan stated in April, “These measures are tailored and not, as Beijing alleges, a ‘technology blockade’.”

US Commerce Secretary Gina Raimondo echoed this sentiment in March, asserting that the administration aims to avoid broad restrictions that could negatively impact American workers and the economy.

The upcoming measures are anticipated to specifically address active investments, including those from U.S. private equity, venture capital, and joint ventures, within China’s semiconductor, quantum computing, and artificial intelligence sectors.

The majority of investments affected by this order will necessitate notification to the government, as sources have previously indicated. However, a subset of transactions will be outright prohibited.

Furthermore, The New York Times reported on Tuesday that the Biden administration plans to broaden the scope of industries subject to reporting requirements for investments in China. This move is intended to provide the U.S. government with heightened visibility into financial transactions between the two countries.

Sources familiar with the matter have previously informed Reuters that the restricted semiconductor investments are likely to align with export control regulations for China established by the U.S. Department of Commerce in October.

Emily Benson, an expert from the Centre for Strategic and International Studies (CSIS), a bipartisan policy research organization, anticipates that investments in artificial intelligence will likely be prohibited for military purposes. Other investments in the sector are expected to require government notification.

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