UK Considers Response To US Technology Investment Ban In China

Prime Minister Rishi Sunak, consider following Joe Biden's steps. (photo: twitter @rishisusunak)

JAKARTA - The UK government said on Thursday 10 August that it was considering how to respond to US President Joe Biden's decision to ban some technology investments in China, adding that it continues to assess potential national security risks.

Biden signed an executive order on Wednesday 9 August authorizing the US Treasury Secretary to ban or restrict US investment in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technology, and certain artificial intelligence systems.

The US government said the measures were designed to address national security risks. China said on Thursday it was very concerned about this move.

Government spokesman Prime Minister Rishi Sunak said the executive order provided important clarity on the US approach. "The UK will consider this new measure carefully as we continue to assess the national security risks associated with some investments."

Recently, London has been trying to stabilize its relationship with Beijing after a period of turmoil over issues such as security regulations in Hong Kong and alleged human rights abuses against Uighur Muslims in Xinjiang.

Foreign Minister James Cleanly outlined a new UK approach in April, saying they would seek to protect themselves by limiting national security threats posed by China while engaging in areas such as trade, investment, and climate change.

Sunak and Biden signed a new deal to strengthen the historical security alliance between their two countries in June, pledging to deepen economic ties in areas such as advanced technology, clean energy, and critical minerals.

Official data shows that China is not a significant foreign investment destination for the UK, with a total of 10.7 billion (Rp205.4 trillion) by the end of 2021, compared to 461.4 billion (Rp6,970 trillion) in the United States. British investment in Hong Kong reached 77.6 billion pounds (Rp1,500 trillion).