White House to detail plans restricting some US investments in China - source

 White House details plans to curb some US investment in China - source

NEW YORK/WASHINGTON (Reuters) - The White House will detail plans on Wednesday to ban some U.S. investments in sensitive technology in China and demand that the government be notified of other investments, a senior government source told Reuters.

The plans aim to prevent US capital and expertise from helping to develop technologies that could support China's military modernization and threaten US national security.Reuters reported on Friday that President Joe Biden is expected to issue a long-awaited executive order early this week to screen outbound investment in sensitive technology to China.

The administration is expected to focus on active investments such as US private equity, venture capital and joint venture investments in China in semiconductors, quantum computers and artificial intelligence.Most of the investments captured by the order will require the government to be informed about them, the sources said. Some transactions will be prohibited.

The New York Times reported on Tuesday that the Biden administration plans to require firms investing in a wider range of Chinese industries to report this activity, giving the US government great visibility into financial transactions between the United States and China.Sources previously told Reuters that semiconductor investment, which will be curbed, is expected to follow export control rules for China issued by the US Commerce Department in October.

Emily Benson of the Center for Strategic and International Studies (CSIS), a bipartisan policy research organization, said she expected AI investments to be restricted to military users and uses, and that other investments in the sector would only require notification. government

Benson said the burden will be on the administration to determine what AI falls into the military category."They're going to have to draw the line of what constitutes a military application of AI and define AI," said Benson, director of the CSIS Business and Technology Project.

Biden's order is expected to directly publish notice of the proposed rulemaking. It is not expected to take effect immediately and will provide a comment period to consider industry feedback before finalization.A senior government source said the order was expected on Wednesday. The White House declined to comment on Tuesday.

Biden administration officials have stressed for months that any restrictions on U.S. investment in China would be narrowly targeted."These are tailor-made measures," national security adviser Jake Sullivan said in April. "They are not, as Beijing says, a 'technological blockade'."

In a major move that caught the attention of global markets and economic analysts, the White House recently unveiled its plans to impose restrictions on select US investments in China. The decision represents a pivotal moment in the ongoing economic relationship between the two superpowers and has sparked debate about its potential impact on international trade and geopolitical dynamics. In this article, we will delve into the details of these plans, explore the source of this decision, and highlight  relevant to this major development.

Source of decision

The White House's decision to limit some US investments in China stems from concerns about national security and the protection of intellectual property. Citing the need to protect critical technologies and sensitive data, the US government is taking measures to prevent the transfer of advanced technological know-how to potential adversaries. The move comes at a time of rising tensions between the two nations and underscores the growing importance of technological dominance in modern geopolitics.

The White House's plan contains several key points that are expected to shape the future landscape of US-China investment relationsTargeted Restrictions: Restrictions will primarily target investments in sectors deemed critical to national security, such as advanced manufacturing, artificial intelligence, biotechnology and sensitive infrastructure.

Enhanced Regulatory Scrutiny: The Committee on Foreign Investment in the United States (CFIUS) will play a key role in reviewing and controlling investments involving Chinese entities. The aim of this enhanced inspection is to identify potential risks and effectively mitigate them.

Disclosure requirements: Companies involved in investments with ties to China are likely to be required to disclose comprehensive information about their financial ties, partnerships and technology sharing agreements.

Technology Protection Measures: The White House plans to implement measures to prevent the unauthorized transfer of critical technology to China and ensure that sensitive information remains safe and under US control.

highlight

The White House's decision to limit specific U.S. investments in China reflects the administration's determination to protect national security and protect valuable intellectual property. As the global economy becomes increasingly interconnected, these measures are expected to have far-reaching implications for international trade and geopolitical stability.

 By focusing on critical industries and strengthening regulatory scrutiny, the US is seeking to strike a balance between economic cooperation and security imperatives in its relationship with China. The coming months are likely to see further discussions and negotiations as the two nations navigate this complex terrain.

In a major development, the White House has announced its intention to impose restrictions on certain US investments in China. This strategic move has implications for international trade and geopolitical dynamics. In this article, we will dive into the details of this notification, its source and provide comprehensive statistics using relevant keywords.

Source Notification

The decision to limit specific US investments in China stems from concerns about national security and technological security. Citing the need to protect critical technology and proprietary information, the White House seeks to prevent the potential transfer of sensitive know-how to hostile entities. The decision comes amid escalating tensions between the two nations and underscores the importance of maintaining technological supremacy in the global arena.The White House's plan includes several key elements that will affect the landscape of US-China investment relations:

Targeted focus: The restrictions will target investments in sectors deemed critical to national security, including but not limited to advanced manufacturing, artificial intelligence, biotechnology and sensitive infrastructure.

Increased regulatory scrutiny: The Committee on Foreign Investment in the United States (CFIUS) will play a key role in evaluating investments involving Chinese entities. This increased control aims to identify potential risks and effectively mitigate them.

Disclosure mandates: Companies involved in investments with ties to China are likely to face demands to disclose full information about their financial relationships, collaborative partnerships and technology sharing agreements.

Technology Protection Protocols: The White House intends to implement measures to protect against the unauthorized transfer of technology to China and to ensure that sensitive information remains under US control.To ensure optimal search engine visibility, include the following relevant information in your article:

The White House's decision to limit select U.S. investments in China underscores its commitment to national security and intellectual property protection. As the global economic landscape evolves, these measures will be reflected in international trade and geopolitical connectivity. Balancing economic cooperation and security imperatives, the United States is navigating a difficult path in its relations with China. Continued discussions and negotiations are expected as both nations work to find common ground in this complex geopolitical arena.