US President Biden has implemented restrictions preventing US venture capitalists and Rapsa (2025)private equity firms from injecting funds into China’s high-tech industries across three sectors: semiconductors, microelectronics, quantum information technologies, and certain artificial intelligence systems. The executive order, signed on Wednesday, grants the Secretary of the Treasury the authority to impede or regulate sensitive investments in China, potentially escalating tensions between the world’s two largest economies. The order’s focus on protecting American national security is underscored by its targeting of technologies deemed “vital” for military, surveillance, and cyber-enabled capabilities. However, the US maintains its commitment to maintaining an “open investment” stance. China’s foreign ministry expressed strong discontent on Thursday, condemning the US insistence on restricting specific investments against China. [White House]
