The U.S. will prohibit Americans from investing in some Chinese companies developing advanced semiconductors and quantum computers starting next year, escalating Washington’s efforts to prevent Beijing from producing cutting-edge technology for its military.
President Biden on Wednesday issued an executive order creating the rules after months of deliberations. The move could unsettle fragile efforts to rekindle diplomatic relations with China. Officials in Beijing have railed against U.S. policies restricting access to advanced technology, as tensions between the two superpowers have contributed to slowing U.S. direct investment in China.
Beyond banning new private-equity, venture-capital and joint-venture investments in advanced semiconductors and quantum computers, the executive order will also require Americans doing business in China to inform the U.S. government about direct investments in artificial intelligence and other types of semiconductors.
Read the full story on The Wall Street Journal here.