China has strongly criticised the new US policy aimed at restricting investments in Chinese technology, pledging to safeguard its interests and asserting that the move disrupts global supply chains.
US President Joe Biden had announced an executive order directing the Treasury Department to limit certain US investments in sensitive high-tech sectors in China, which encompass semiconductors, quantum computing, and artificial intelligence.
China’s foreign ministry condemned the action, characterising it as an effort to engage in “anti-globalisation and de-sinicisation.” The ministry warned that China will resolutely protect its rights and interests.
An unnamed foreign ministry spokesperson stated, “Beijing is strongly dissatisfied and firmly opposes the United States’ insistence on introducing restrictions on investment in China, and has lodged solemn representations with the United States,” as published in an online statement.
The executive order issued by Biden was criticised by China for significantly diverging from the market economy and principles of fair competition that the US has traditionally advocated. The Chinese commerce ministry expressed concern that the order could disrupt companies’ normal operational decisions, harm the global trade order, and severely impact the security of worldwide industrial and supply chains.
Amid various fronts of engagement with China, including military, economic, and technological aspects, the US is positioning itself through this policy change. China hopes that the US will refrain from artificially obstructing global economic and trade exchanges, while also avoiding impediments to the recovery of the global economy.
The new restrictions are anticipated to take effect next year, reflecting a broader context of escalating tensions between the two nations.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.