President Joe Biden signed an executive order Wednesday authorizing the Department of the Treasury to regulate U.S. technology investments in China and other countries of concern.
The regulatory measure covers three technological sectors sensitive to national security, namely: semiconductors and microelectronics, quantum information technologies, and artificial intelligence. The EO follows extensive and thorough consultations by the White House with industry and foreign allies and partners.
The Treasury elaborated on the scope of the program in an Advanced Notice of Proposed Rulemaking released simultaneously with the EO’s signing. It will be subject to public comment before taking effect. Under the order, the Treasury Secretary shall consult with the Commerce Secretary and heads of other relevant agencies in identifying categories of prohibited transactions.
Later Thursday, Beijing slammed the EO as “gravely” concerning. A Reuters report quoted the Chinese commerce ministry as saying that China reserves the right to take measures against the U.S. order. According to the regime, the EO undermines fair competition principles and the international economic and trade order.