Biden Introduces Ban on Chinese Investment to Protect Interests

(NationalUSNews.com) — President Joe Biden signed an executive order to ban United States investment in China in specific technology-related sectors, including computer chips. The order also requires government notification in other related tech sectors.

Biden’s ban allows the United States Treasury Department to restrict investments in key technological areas, such as semiconductors, microprocessors, and artificial intelligence. Biden’s policy is the latest instance of the United States attempting to limit China’s technological advantage, a growing concern amongst Democrats and Republicans alike. China is advancing quickly in technological development and outproduces the United States in critical areas like computer chip manufacturing, a growing industry required for modern electronic production.

Biden’s ban will prevent parties within the United States from providing China with the resources to further its technological industry and militarization and protect national security. Chinese officials are angry about the prohibition, claiming that Biden is undermining international law and ignoring the principles of a “free market.” China also claims it has the right to take measures against the United States but didn’t specify what actions could occur.

Biden isn’t just concerned about China’s potential advantage over the United States in technological or military fields but the country’s economy in general. Biden discussed the state of China’s economy, claiming that the country’s GDP growth is a fourth of what it was in 2022 and that China was in trouble. Biden also called China’s economy a “ticking time bomb.”

Biden’s statistics regarding China’s GDP are only partially accurate, as China had two-quarters of solid growth, with their most recent quarter suffering statistically. While China’s economic growth for 2023 averages out at around 2.4 percent, this number will likely rise substantially after the upcoming quarter’s end.

Chinese officials are frustrated with Biden’s comments regarding the nation’s economy and political leader, President Xi Jinping. Biden called Xi Jinping a “dictator” during a public appearance, where he spoke about the infamous Chinese spy balloon incident. Chinese officials called Biden’s comments regarding Xi Jinping a provocation but claimed that China is committed to working with the United States to lessen international tensions between the two nations.

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