US-China Tech Sector Relations Might See A Gap Soon

According to reliable sources familiar with internal discussions, it looks like US President Joe Biden is gearing up to sign an executive order that aims to put a leash on crucial US technology investments in China.

This executive order is expected to be unveiled in the second week of August and will be laser-focused on three major areas: Semiconductors, Artificial Intelligence, and Quantum Computing. 

The news from Bloomberg reveals that it won't mess with existing investments but will take aim at specific transactions. However, other technology deals will need to go through mandatory government disclosure.

The decision comes at a time when worries are running high about China's growing influence in the tech world and the potential risks to national security. The Biden administration hopes to safeguard sensitive American technologies by limiting vital investments in China, preventing them from being misused against US interests.

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While we don't have all the nitty-gritty details of the order yet, the emphasis on semiconductors, artificial intelligence, and quantum computing clearly shows the massive importance of these sectors on the global tech stage. This move is likely to have significant ramifications for tech companies and investors involved in cross-border collaborations between the two economic powerhouses.

Beijing has already given a heads-up that they won't take it lightly if the US starts putting new restrictions on technology or capital flows, indicating potential tensions over tech and economic policies between the two countries.

Behind the scenes, the Biden administration's discussions have reportedly shifted from hashing out the specifics of the measures to planning how they'll roll out the order and what regulations will accompany it. The complexity of the issue has led to a few delays in finalizing the order, with the timing getting pushed around a bit.

With the global tech competition heating up, this executive order could be a real game-changer for US-China relations. It's bound to impact technology trade, investment, and research collaborations, and everyone's eagerly watching to see how China responds and how it might shake up the global tech supply chain and market.

This alleged action by the Biden administration may be a strategic effort to keep the US leading in technology and safeguard national security in the fast-evolving global tech scene. Watching how this order is carried out will be rather exciting and suspenseful, as it will be crucial in shaping its impact on US businesses, China's tech sector, and the delicate balance of technology collaboration and competition between the two powerful nations.

(Source)