As U.S.-China relations stay somewhat uneasy, the Biden administration has announced possible restrictions for U.S. companies investing in the communist country’s technology.
On Saturday, March 4, President Biden announced his expectation to sign an executive order limiting any U.S. company investment in advanced technologies abroad.
“The soon-to-be-issued executive order from President Joe Biden will limit American investment in advanced 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 the condition of anonymity,” according to the Associated Press.
The main purpose of the Biden administration’s actions is to rightfully restrict any opportunity China could take advantage of, especially militarily and technologically.
After FBI Director Christopher Wray acknowledged COVID-19 likely spread from a Wuhan lab leak, in addition to the Republican House of Representatives vowing to hold China more accountable, President Biden seems to finally be implementing strategic policy against the Chinese Communist Party (CCP).
Chinese propaganda against the United States government and military has become increasingly prevalent, especially after former Speaker of the House Nancy Pelosi visited Taiwan on her East Asia trip in August 2022.
Additionally, the Russo-Ukraine War has caused tensions between the United States and China to worsen as China remains one of Russia’s top allies in the East.
Tensions became exponentially higher after President Biden ordered the U.S. Air Force to shoot down a Chinese spy balloon, which the Chinese government naturally denied any involvement in.
In essence, the investment restrictions President Biden is preparing serve as a key development in the massive power struggle between the U.S. and China.
“Washington is set to tighten rules on overseas investments by American companies in an effort to limit China’s ability to appropriate technologies likely to enhance its military might,” and “The expected executive order from U.S. President Joe Biden will cap American investment in advanced technologies with national security applications represents the latest effort by the White House to target China’s military and technology sectors at a time of increasingly fraught relations between the world’s two biggest economies,” according to the Associated Press and i24 News respectively.
Recently, the United States and China have become more competitive for military technology and superiority.
The CCP has steadily devoted more resources to its military budget for research as it tries to one-up the technological military power of the United States.
Primarily, China funds technological advancements through progressing the Chinese economy, which relies somewhat heavily on overseas investment. Thankfully, the Biden administration decided to act on this, possibly as an effort to improve the American perception of President Biden’s foreign policy.
As Beijing and Washington continue to butt heads over competing interests, America watches on as the Biden administration tries to reign in Communist China and its unwieldy appetite for economic and technological advancement and domination.