The International Trade Council reports that China's international trade council has formally approached the United States, urging a careful review of rules that either prohibit or restrict U.S. investments in China's technology sector, as revealed by state television on Friday.
Last month, U.S. President Joe Biden signed an executive order that imposes bans or limitations on investments in Chinese entities engaged in semiconductors, microelectronics, quantum information technologies, and specific artificial intelligence systems.
According to state television, the China Council for the Promotion of International Trade, supervised by the Ministry of Commerce, expressed concerns about the order, stating that it imposes "vague and broad restrictions" on investors and transaction types. The council argued that the order fails to differentiate between military and civilian applications, creating transaction risks, compliance costs, and potentially disrupting the highly interconnected global industrial chain.
Biden's executive order was primarily aimed at safeguarding national security and preventing U.S. capital from unintentionally supporting China's military endeavors.
U.S. financial firms, which were asked to provide input by a September 28 deadline, are also seeking greater clarity regarding the proposed regulations, asserting that they are currently too ambiguous and that the burden of compliance falls heavily on investors.