President Biden has signed an executive order banning US investment into Chinese owned or manufactured “sensitive technologies”.
The reason behind the ban, as written in the executive order, is to inhibit the development of these technologies which may pose significant security threats to the US. The ban exemplifies this as “the development of more sophisticated weapons systems, the breaking of cryptographic codes, and other applications that could provide these countries with military advantages.”
Specifically, the ban on investment argues that such investment is at risk of being exploited to be used in such technological advancements.
Whilst the US reaffirmed its commitment to creating valuable economic competition and cross-border investment, this does not apply to investments that may be at odds with national security.
China has already responded to the ban.
In a statement, China’s a Foreign Ministry spokesperson described China as deeply “dissatisfied” with the order.
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Speaking on the reason behind the ban, they stated that the real motive was to “deprive” China of its right to develop its own technology industry under the “guise of national security.”
China believes the ban not only seriously disrupts principles of market economy, but also reveals the US’ “naked economic coercion and technological bullying.”
Instead, China urged the US to fulfil its promises of healthy communication and unintentional decoupling, as made by Janet Yellen in her state visit to Beijing this July.
The ban comes as US patents see significant decline in comparison to filings and investment by China.
Number of technology patents filed by the US and China.
Artificial Intelligence was by far the biggest theme within these patents, closely followed by cybersecurity and health tech.
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