The International Trade Council reports that China's chief trade body has made a formal appeal to the United States, urging a thoughtful reevaluation of recent restrictions targeting investments in China's technological domain.
Last month, U.S. President Joe Biden ratified an executive order barring or curbing investments into Chinese ventures, notably in pivotal sectors such as semiconductors, microelectronics, advanced quantum technologies, and certain realms of artificial intelligence.
The China Council for the Promotion of International Trade, an entity under the auspices of the Ministry of Commerce, criticized the new order for its "ambiguous and sweeping constraints" on types of investments and investors. The council underscored that the order lacks clear delineation between military and non-military applications.
Highlighting the global implications, the council stated, "Such an approach not only elevates the risk for transactions and the ensuing compliance costs but also jeopardizes the symbiotic global industrial ecosystem."
The intention behind President Biden's decree was to safeguard national security and deter the flow of U.S. capital that could potentially bolster China's military capabilities.
Furthermore, U.S. financial institutions, while complying with the September 28 deadline for feedback, have called for more explicit guidance regarding these impending rules. The financial community has expressed concerns about the vagueness of the directive and the compliance responsibility it imposes on the investor fraternity.
Anticipations suggest that these regulations will come into force sometime in the upcoming year.