President Joe Biden will release this week an executive order to scrutinize outbound investments in sensitive technologies to China, according to a Reuters report. The order is designed to stop U.S. capital and expertise from supporting the development of technologies that could modernize China’s military and eventually threaten U.S. national security, the report added.
Sources familiar with the matter said the president’s directive will likely target China-bound investments in semiconductors, quantum computing and artificial intelligence. Under the upcoming regulation, the White House would require private equities, venture capitals and joint ventures to inform the government about their planned technology investments in China.
Cordell Hull, a former official with the Department of Commerce, said the executive order is expected to fill a regulatory gap on funding and know-how and allow the government to review the targeted capital flows.
According to Reuters, in support of the proposal, the Biden administration has already consulted with allies about the plan and conducted meetings with key stakeholders. The government will next seek to solicit comments ahead of implementing the order.