The United States (US) is set to ban private equity and venture capital investments in some Chinese technology companies under a new executive order, Wall Street Journal reported. As per the report, the Biden administration will release the new order on Wednesday.
This is another attempt by Washington’s efforts to prevent Beijing from developing cutting-edge technology for its military.
Earlier, Bloomberg reported that the US also plans to restrict investment to Chinese companies that get at least half of their revenue from cutting-edge sectors such as quantum computing and artificial intelligence.
The White House declined to comment on the Bloomberg report.
US investors will be prohibited from investing in the most advanced semiconductors, specific areas of quantum computing, and AI activity designed for military end users.
This comes at a time when President Joe Biden is determined to improve ties with Beijing with high provide visits of several of his secretaries in recent times.
China has always pushed back against the proposed investment curbs. In July this year, country’s foreign ministry spokeswoman Mao Ning said China opposes the US “politicising and weaponising trade and tech issues.”
