WASHINGTON: President Joe Biden has announced a new set of restrictions to limit US investment in Chinese technology industry, Western media reported on Wednesday.
President issued an executive asking his administration to impose new embargos on US investment in high-tech Chinese companies.
Under the order, a new screening process would be implemented, limiting US private companies from investing in Chinese companies in advanced technologies.
The AFP citing the Treasury Department reported that China could exploit US investments to further its ability to produce sensitive technologies vital to military modernization.
The US Treasury Department will be seeking guidance from the public on the appropriate scope of embargos and will accept comments for the next 45 days.
US President Announces New Ban on Investments in China
Treasury Secretary Janet Yellen traveled to China in July to help encourage dialogue on economic issues, saying that the US administration thinks that it is not difficult to achieve an economic relationship that is mutually beneficial for both countries.
According to senior administration officials, the Biden Administration has consulted all stakeholders including China before issuing the executive order.
Meanwhile, Congress is also considering legislation to target China.
