Biden to sign order curbing US tech investments in China by mid-August

President Joe Biden is planning to sign an executive order to limit critical US technology investments in China by mid-August, according to people familiar with the internal deliberations.

The order focuses on semiconductors, artificial intelligence and quantum computing. It will not affect any existing investments and will only prohibit certain transactions. Other deals will have to be disclosed to the government.

The timing for the order, which is slated for the second week of August, has slipped many times before and there is no guarantee it will not be delayed again. But internal discussions have already shifted from the substance of the measures to the roll-out of the order and the accompanying rule, said the people familiar, who spoke on condition of anonymity.

The restrictions will not take effect until next year. The exact scope of the measure will be laid out in a rule making process, involving a lengthy comment period so stakeholders can weigh in on the final version.

A spokeswoman for the National Security Council declined to comment.

China’s envoy in Washington said earlier this month that Beijing would retaliate if the US imposes new limits on technology or capital flows.

National Security Adviser Jake Sullivan first publicly discussed the concept in July 2021. Lawmakers from both parties have also shown interest in legislating on the matter although a bill has not yet made it to Biden’s desk.

The Senate this week passed an amendment to the national defence policy bill that would require firms to notify the government about certain investments in China and other countries of concern, although they would not be subject to review or possible prohibition.