China Trade Council asks USA to "carefully consider" tech investment ban
China's International Trade Council has formally requested the US to "carefully consider" their latest regulations intended to restrict U.S. investments in China.
The rules, signed through an executive order by Joe Biden, the US President, will come into effect sometime next year. These restrict investments into Chinese establishments involved in artificial intelligence systems, quantum information technologies, semiconductors, and microelectronics.
The primary goal of the order is to safeguard national security and prevent aiding the Chinese military through US funding.
However, the China Council for the Promotion of International Trade said that the order fails to differentiate between civilian and military purposes. Instead, they are too broad and vague.
According to the council, the new rules only serve to damage the highly interdependent global industrial chain and will also give rise to compliance costs and transaction risks.
U.S. financial firms, which have a Sept 28 deadline to provide input on the new rules, have said the orders are vague and place undue compliance pressure on them. The firms are seeking more clarity on the proposed new rules.