China’s international trade council has pleaded with the US to “carefully consider” rules that restrict or ban US investments in China’s tech sector, according to state television on Friday (29 September).
The executive order, signed by US President Joe Biden in August, restricts or bans investments in any China-based companies that work in semiconductors, quantum information technologies and other AI systems.
China’s Council for the Promotion of International Trade slammed the order on state television, claiming it sets “vague and broad restrictions” on investors. Joined by the Ministery of Commerce, the body claimed the order fails to separate military and civillian purposes.
In August, Biden said the executive order was put in to avoid funding China’s military and to protect US national security.
“That not only gives rise to transaction risks and compliance cost…but also damages the highly inter-dependent global industrial chain,” the body said.
It comes after the US Commerce Department announced last week that it had issued its final rules to prohibit semiconductor manufacturing subsidies being used by China and other countries deemed as a national security threat.
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The regulations signaled a final hurdle for Biden’s “Chips and Science” Act, which will be offering $39bn in subsidies for the production of semiconductors to boost manufacturing.
The landmark law is offering $52.7bn for US semiconductor production, research and development.
AI venture capital deals in China plummeted in 2022 and don’t haven’t seemed to been recovering in 2023 so far either, according to GlobalData’s deal database.
The research company found that the country's venture capital deals totalled $6.8bn in 2022, dropping from $16.8bn in 2021.
AI deals total $3.7bn in 2023 to date, almost half of the year prior.
Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.