Biden issues executive order restricting US investment in Chinese tech

President Joe Biden on Wednesday signed an executive order that will narrowly prohibit certain United States investments in sensitive technology in China and require government notification of funding in other tech sectors. Biden said in a letter to Congress he was declaring a national emergency to deal with the threat of advancement by countries like China "In sensitive technologies and products critical to the military, intelligence, surveillance, or cyber-enabled capabilities". The long-awaited order authorises the US treasury secretary to prohibit or restrict certain US investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. The order seeks to blunt China's ability to use US investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations' economies. The US has limited the export of advanced computer chips, sought to limit investments in China and kept the expanded tariffs set up by former President Donald Trump. The order is aimed at preventing US capital and expertise from helping develop technologies that could support China's military modernisation and undermine US national security. China's foreign ministry accused the Biden administration of pursuing "Technology hegemony" and demanded Washington "Immediately revoke its erroneous decision".