An executive order has been signed by President Joe Biden to block Chinese investment in U.S technology sector.
President Biden, who signed the order on Thursday, asked the administration to keep a close tab on inbound investment in the technology sector in the United States.
According to the administration officials, the move will create an atmosphere of tension with Beijing. Also, the step will emphasise more on threats to sensitive data, cyber security, and areas such as microelectronics and artificial intelligence.
In an executive order, Biden also instructed the U.S. Treasury’s powerful Committee on Foreign Investment in the United States (CFIUS) to more closely vet transactions that could impact U.S. leadership in biotechnology and quantum computing, according to senior administration officials briefing reporters on the move.
The executive order will help guide the committee and should also help businesses and investors better identify early on national security risks arising from transactions to help them determine whether to file with CFIUS,” one of the officials said.
U.S. companies making deals with foreign entities are required to file with the agency if they meet certain criteria.
Recall that the US has been having a running battle with Huawei, a Chinese company, over technology theft.