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Are US tech curbs the end of the road for better ties with China?
- Biden’s executive order is unlikely to stop further visits by top American officials but there are uncertainties ahead, analysts say
- While Beijing is looking to engage the world, it still has the option of retaliation, they say
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Washington has called its latest curbs on tech investment in China a “small yard” with a “high fence”.
The description is meant to send the message that the United States only wants to de-risk – not decouple – from China.
The curbs unveiled in an executive order on Wednesday restrict US venture capital and private equity investments in Chinese semiconductor, quantum computing and artificial intelligence systems companies – areas it said were critical to Chinese military advancement that could threaten US national security.
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Analysts say the restrictions have raised the odds of further damage to the relationship between the two countries but will not alter the direction towards recovery.
They say both sides have taken steps in recent weeks to limit fallout from an order that US officials say has been in the works for at least a year.
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Biden to introduce new restrictions on US investments in China, declares tech ‘emergency’
Biden to introduce new restrictions on US investments in China, declares tech ‘emergency’
Da Wei, director of the Centre for International Security and Strategy at Tsinghua University, said the order was not as sweeping as expected and would not affect a planned visit to China by US Commerce Secretary Gina Raimondo.
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