China’s chamber asks US to “carefully consider” tech investment ban

Updated on: 15 November 2023

Reuters

China wants the United States to “carefully consider” the rules that ban or restrict US investments in China's tech sector, as officially asked by China's International Trade Council, state television reported on Friday.

State television said the China Council for the Promotion of International Trade, which is supervised by the Ministry of Commerce, said the order sets "vague and broad restrictions" on investors and transaction types, and does not differentiate between military and civilian purposes.

“That not only gives rise to transaction risks and compliance cost...but also damages the highly inter-dependent global industrial chain,” the chamber added.

US President Joe Biden signed the executive order last month, which prohibits or restricts investments in Chinese entities involved in semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems.

Biden's order was aimed at protecting national security and preventing US capital from aiding China's military.

US financial firms, asked to meet a Sept 28th deadline to provide input, are also pushing for greater clarity on the proposed new rules which they say are too vague and put the onus of compliance on investors.

The rules are expected to be implemented sometime next year.