President Joe Biden issued an executive order to block and regulate U.S. investments in Chinese technology.
The executive order covers computer chips, microelectronics, quantum information technologies and artificial intelligence. According to the Associated Press, the order is focused on maintaining national security rather than being focused on economic and financial interests.
The order seeks to minimize China’s ability to use U.S. money to finance its technology and therefore upgrade its military. The categories that the executive order covers are narrow enough to prevent other levels of trade that are vital for both nations’ economies.
China responded in a statement that it has “serious concern” about the order and “reserves the right to take measures.”
The U.S. government has also limited the export of advanced computer chips and the Biden administration has kept the expanded tariffs set up by former President Donald Trump.
China has accused the U.S. of “using the cover of ‘risk reduction’ to carry out ‘decoupling and chain-breaking.’”
Biden has expressed concern about China before. He called Chinese President Xi Jinping a “dictator” after the U.S. shot down a spy balloon from China. He also said that China had become coercive regarding Taiwan’s independence.
Investors have also expressed concern about China’s tither security controls, and some are uneasy about their future in a state-dominated economy.