Biden Executive Order Expected To Limit US Investment In China

Bloomberg has reported that President Biden is set to sign an executive order in the coming weeks limiting investment by US companies in key parts of the Chinese economy.

• Bloomberg reports that the administration has been debating the measure for almost two years and plans to enact the measure before the May 19 G7 summit in Japan.
• BBG: "The US has been briefing its G-7 partners on the investment curbs, and hopes to get an endorsement at that meeting, even though the other countries aren’t expected to announce similar restrictions at the same time, the people said."
• Bloomberg writes: "Capital flows between the world’s two biggest economies are in the crosshairs," stating that the action will represent an escalation of economic measures taken by the US government which began with tariffs imposed by the administration of former President Donald Trump.
• BBG: "The executive order will cover the fields of semiconductors, artificial intelligence and quantum computing – focusing on investments where US firms play an active role in management. That includes venture capital and private equity, as well as certain forms of technology transfer and joint ventures."