US president intends to limit investment in Asian nation’s defense industry, Axios reports
U.S. President Joe Biden is finalizing an executive order to limit U.S. investment in China’s defense industry, Axios reported on Friday.The move will further strengthen what Beijing says is a movement “Economic coercion.”
Citing anonymous sources, Axios said the order would be issued later this summer. Rumors of an imminent order had circulated in the US media since April, but Axios sources said work on the decree had slowed as Washington tried to persuade its G7 allies to issue similar restrictions.
“clear progress” The issue was discussed at the G7 summit in Japan this month, one of the sources said.
It is unclear to what extent the order will define China’s “Defense industry.” China’s military-industrial complex is almost entirely state-owned and has already been sanctioned by the Biden administration.Instead, the Act will cover “The Fields of Semiconductors, Artificial Intelligence, and Quantum Computing,” Bloomberg reported last month that the technologies all have military applications.
Biden has already sought to curb Beijing’s technological advances, imposing export controls last October to block the sale to China of hardware and software used to make semiconductors. In addition, the United States is currently negotiating with Japan, South Korea and Taiwan to formalize the so-called “Chip 4 Alliance”, which Beijing sees as an attempt to exclude China from the semiconductor supply chain.
While Biden and his officials justified the measures on national security grounds, Chinese Foreign Ministry spokesman Wang Wenbin claimed last month that Washington’s “The real purpose is to deprive China of its right to development. This is pure economic coercion.”
Beijing responded in kind to semiconductor export controls, banning chips made by the U.S. company Micron from use in its national infrastructure and investigating the company for potential risks “Cyberspace Security Risks.”
“We don’t want to decouple from China, we want to reduce risk and diversify our relationship with China,” Biden said at the end of the G7 summit.However, Beijing responded to a joint communiqué issued by the group accusing China of posing a military and economic threat to the United States and its allies, condemning “Anti-China” Collect and send formal complaints to the Japanese government.
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