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New Executive Order by Biden Implements Restrictions on U.S. Investments in Chinese Technology

Biden’s Executive Order Restricts U.S. Investments in Chinese Technology


In a move aimed at safeguarding national security and strengthening America’s position in the global technology race, President Joe Biden signed an executive order on Wednesday to block and regulate high-tech U.S.-based investments going toward China. This decision reflects the intensifying competition between the United States and China, the two largest powers in the world. While the order focuses on specific categories such as advanced computer chips, microelectronics, quantum information technologies, and artificial intelligence, it is important to understand the motivations behind this move and its potential implications for both countries.

The Motivation behind the Executive Order

The Biden administration has made it clear that this order is not driven solely by economic interests but rather by national security concerns. By restricting U.S. investments in Chinese technology companies, the aim is to prevent China from using these funds to advance its military capabilities. China has been known to exploit foreign investments to support the development of weapons and modernize its military, posing a potential threat to international security. With this executive order, the United States hopes to blunt China’s ability to leverage American investments for military gains.

Moreover, the order seeks to strike a delicate balance between national security and economic trade. While the United States recognizes the importance of maintaining broader levels of trade with China for the benefit of both nations’ economies, it also wants to ensure that its advanced technologies do not inadvertently contribute to China’s military advantages. By focusing on specific sectors and types of investments, the order aims to limit any potential disruptions to China’s economy while safeguarding U.S. interests.

The Geopolitical Competition between the United States and China

The United States and China find themselves increasingly locked in a geopolitical competition with divergent sets of values. The Biden administration has emphasized that it does not intend to completely decouple from China. However, this order, along with the export controls on advanced computer chips put in place by former President Donald Trump, demonstrates a strategic approach to counter China’s growing influence.

President Biden has been vocal about China’s struggling economy and believes that the U.S. resurgence of alliances with key partners such as Japan, South Korea, Australia, and the European Union has tempered China’s global ambitions. The administration consulted with these allies and industry stakeholders to shape the executive order, underlining the importance of collective action to address China’s technological advancement.

Reaction and Calls for Stronger Action

While the executive order has received bipartisan support and is seen as an essential step forward, some lawmakers and experts argue that it should go further. Democratic Representative Raja Krishnamoorthi views it as a positive move but acknowledges that it cannot be the final step in countering China’s technological influence. On the other hand, Republican presidential candidate Nikki Haley, a former U.S. ambassador to the United Nations, advocates for a complete halt in U.S. investment in China’s critical technology and military companies.

It is clear that there is a strong desire to counter China’s rise, not only from a national security perspective but also from an economic standpoint. China’s practices, such as crackdowns on foreign companies and support for Russia’s invasion of Ukraine, have raised concerns among lawmakers. They believe that the United States should take a more aggressive stance to protect its interests.

Related Facts

– In July, the Senate voted 91-6 to add requirements to monitor and restrict investments in countries of concern, including China, as an amendment to the National Defense Authorization Act.

– Chinese President Xi Jinping has been referred to as a “dictator” by President Biden following the shooting down of a Chinese spy balloon over the United States.

– Taiwan’s status has been a source of tension, with Biden accusing China of coercive tactics to undermine the island’s independence.

– The U.S. Chamber of Commerce has expressed support for the executive order but aims to ensure that it is targeted and administrable during the comment period.

Key Takeaway

President Biden’s executive order restricting U.S. investments in Chinese technology reflects the intensifying competition between the United States and China. Motivated by national security concerns, the order aims to prevent China from leveraging American investments to advance its military capabilities. While the Biden administration maintains that it does not seek to completely decouple from China, the order demonstrates a strategic approach to counter China’s growing influence. However, there are calls for even stronger action to be taken to protect U.S. interests in the face of China’s technological advancement.


With the signing of the executive order, President Biden has taken a significant step towards safeguarding national security and addressing the growing competition with China. By restricting U.S. investments in Chinese technology, the United States aims to prevent China from leveraging these funds for military gains. However, the order is narrowly focused and aims to avoid disrupting broader levels of trade between the two nations. As this order evolves and goes through the public comment process, it remains to be seen how it will impact the technological competition between the United States and China, and whether it will be viewed as a sufficient measure or a starting point for further action.

Denk Liu
Denk Liu
Denk Liu is an honest person who always tells it like it is. He's also very objective, seeing the situation for what it is and not getting wrapped up in emotion. He's a regular guy - witty and smart but not pretentious. He loves playing video games and watching action movies in his free time.

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