The US President Joe Biden has signed an executive order to limit US investments in the Chinese tech industry. The Biden administration is making an all-out effort to make sure China doesn’t get ahead in making sophisticated technology. More and more restrictions are being placed on the Chinese economy amid increasing competition between the two giant world powers.
Order Doesn’t Have Economic Dimension
Officials at the White House have said the new executive order is not aimed at restricting China’s growing economic power, but rather its military capabilities.
The Associated Press reported that the latest round of restrictions is aimed at limiting China’s ability to develop a powerful military that can threaten US allies in the region. Biden wrote in a letter to Congress that he is declaring a national emergency to deal with threats like China by limiting their “military, intelligence, surveillance, or cyber-enabled capabilities”.
In response to the latest order, China’s ministry of commerce stated that it reserves the right to take appropriate measures. China’s foreign ministry claimed that the Biden administration was pursuing “technology hegemony” and demanded the reversal of the executive order.