China's International Trade Council Asks US To Consider Prohibition Of Investment In The Technology Sector

The Chinese government asked the US to consider a ban on investment in technology (photoL: dock. pexels)

JAKARTA - China's International Trade Council has officially asked the United States to "consider carefully" the rules that prohibit or limit US investment in China's technology sector. This was reported by state television station on Friday, September 29.

United States President Joe Biden signed an executive order last month banning or restricting investment in Chinese entities involved in semiconductors, microelectronics, quantum information technology, and certain artificial intelligence systems.

State television reported that China's Council for International Trade Promotion, which is overseen by the Ministry of Trade, said the order set "fam and broad" restrictions on investors and types of transactions, and did not differentiate between military and civilian goals.

"This not only creates risk transactions and compliance costs... but also destroys global industrial chains that depend heavily on each other," the council added.

Biden's order was aimed at protecting national security and preventing US capital from assisting the Chinese military.

US financial companies requested to provide input until September 28 also urged that the new proposed rules be clearer, which they claim is too vague and places a burden on compliance with investors. The rules are expected to be implemented next year.