US Set to Ban Several Chinese Investments - Reports

Numerous news outlets report that the Biden administration will unveil a much-anticipated executive order on Wednesday. The order will prohibit American venture capital and private equity firms from investing in certain segments of Chinese technology businesses. The directive is likely to regulate foreign investments particularly in Chinese firms specializing in advanced technologies like quantum computing, semiconductors, and artificial intelligence.

It is reported that some investments in those technologies will be prohibited, while Americans that own stakes affected by the order have to disclose their holdings to the government. According to the Wall Street Journal investors that violate the rules may be forced to divest their stakes or be subject to fines.

The move is generally believed to be an attempt by Washington to curb growth in technologies that may boost the advancement of Chinas military capabilities or pose national security risks to the U.S.

A representative from China's Washington-based embassy condemned the prospective executive order last week and stated in a conversation with Reuters that the US often treats trade and technology issues politically. The representative further added that the US uses these issues as a tool and weapon, citing national security as their reason.