(Wilmington) The Biden administration is set to tighten rules on certain U.S. corporate investments overseas in a bid to limit China’s ability to acquire technology that could enhance its military prowess, official says American aware of the discussions.
President Joe Biden’s soon-to-be-released executive order will limit U.S. investment in cutting-edge technologies that have national security applications — such as next-generation military capabilities that could help China improve the speed and accuracy of military decision-making, according to the official, who was not authorized to comment and spoke on condition of anonymity.
The expected action is the latest effort by the White House to target China’s military and technology sectors amid increasingly strained relations between the world’s two largest economies.
In October, the Biden administration imposed export controls to limit China’s ability to access advanced chips, which it says can be used to make weapons, commit human rights abuses and improve the speed and accuracy of its military logistics.
The complicated relationship has grown even more strained in recent weeks after the United States shot down a Chinese spy balloon that flew across the country last month. The Biden administration has also released US intelligence findings that raise concern that Beijing is considering supplying Russia with weapons for its war on Ukraine.
Tensions surfaced as senior G20 diplomats ended a contentious meeting in New Delhi on Thursday with no consensus on the war in Ukraine and concerns over China’s growing global influence.
Meanwhile, China last week lambasted the new House of Representatives Select Committee on the Chinese Communist Party after it held its first hearing on curbing Beijing’s influence. Foreign Ministry spokesman Mao Ning called on its members to “reject their ideological bias and win-lose Cold War mentality”.
Administration officials consulted with allies as they worked to formulate new regulations on U.S. investments, according to the official.
THE wall street journal reported for the first time on Saturday that the Treasury and Commerce Departments had delivered reports to lawmakers on Friday detailing plans for the new regulatory system to respond to U.S. investments abroad in cutting-edge technology. The agencies said they expect to seek additional funding for the investment screening program in the White House budget, which is expected to be released on March 9, according to the Log.
A spokesperson for the White House National Security Council declined to comment on the Treasury and Commerce reports, but noted that administration officials have kept Congress informed of its progress in developing an approach to overseas investment.
The expected action is certain to be met with reluctance from US companies. Administration officials have sought to signal to the business community that while they seek to review rules on U.S. investment in China, they are careful not to go overboard.
“One of the most important things we can do, from my point of view, is to make sure that we draw clear lines between what is competitive and what is national security because, fundamentally, I thinks the United States does well when we compete on a level playing field with any country in the world, Deputy Treasury Secretary Wally Adeyemo said at a recent Council on Foreign event Relationships. But we also want, in the interstices where we see a national security risk, to be able to use the tools at our disposal to protect the national security of the United States. »
Last year, a bipartisan group of lawmakers urged President Biden to implement a tougher screening system for investments in foreign adversaries, with China at the forefront.