Biden Signs Order On Restrictions Into Certain China Technology Investments

US President Biden has signed an executive order that will prohibit US investment into certain types of China technology development. Reuters reports the three areas of restricted or prohibited investment will focus on: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems (see this link for more details).

• Reuters notes: "Most investments captured by the order will require the government be notified about them. Some transactions will be prohibited. The Treasury said it anticipates exempting "certain transactions, including potentially those in publicly-traded instruments and intracompany transfers from U.S. parents to subsidiaries."
• As was reported yesterday, the restrictions won't be made retroactive, while they are also expected to take a year to implement.
• US officials stress these are narrowly based restrictions and shouldn't affect the broader economic relationship between the two countries.
• China's embassy in the US has responded by stating it is 'very disappointed' by the actions and that it will safeguard its rights and interests per earlier headlines.