China faces new US offensive with rules to curb investment in technology, claiming Washington has exhausted its strategies
The Chinese Foreign Ministry expressed firm opposition this Tuesday (29) to the recent US initiative to implement rules to restrict investments in technology in China, and promised to take all necessary measures to resolutely protect the country’s legitimate rights and interests.
Experts have pointed out that the intensified technology crackdown campaign by the US will affect business operations, especially of American companies planning to expand in the vast Chinese market. However, it will not stop the progress of independent technological innovation from China.
The US Treasury Department on Monday local time issued a final rule to implement an executive order on US investments in national security technologies in countries of concern. US President Joe Biden identified China, including Hong Kong Special Administrative Region (HKSAR) ea Macau Special Administrative Regionas target countries. Technologies like semiconductors, microelectronics, quantum information and artificial intelligence (AI) were listed in order.
“The Biden-Harris Administration is committed to protecting the national security of the United States and keeping critical advanced technologies out of the hands of those who might use them to threaten our security,” he said. Paul RosenAssistant Secretary for Investment Security.
The rules, initially proposed in June and directed by a Biden executive order in August 2023, will take effect on January 2, 2025 and will be administered by the Office of Global Transactions.
Commenting on the US action, Lin Jianspokesperson for the Chinese Ministry of Foreign Affairs, highlighted in a press conference this Tuesday that China expresses strong dissatisfaction and opposition investment restrictions, and will take all necessary actions to protect your rights and legitimate interests.
A spokesperson for RAEHK criticized the US for targeting China and its region under political pretexts, warning that this will harm the free market and affect the US trade surplus with Hong Kong. The spokesperson highlighted that the restrictions not only disrupt trade between the HKSAR and the US, but also affect the global supply chain stability.
Gao Lingyunspecialist in Chinese Academy of Social Sciences in Beijingstated that the US uses national security as an excuse to suppress China’s development. Although the order mentions “countries of concern,” China was specifically singled out, making US intentions clear.
From restrictions on technology purchases to limitations on capital flow, the US has followed a systematic strategy to contain China, he said. Ma Jihuatelecommunications industry observer. He added that the measures will not prevent the China’s independent innovationwhich has already advanced in areas such as quantum technology and AI.
The market makes the choice
Despite US restrictions, some American companies continue to expand in the Chinese market. On Monday, the chipmaker Intel announced the expansion of its facility in Chengdu, Sichuan province, aiming to improve efficiency of local supply chains.
On Friday, China’s Commerce Minister, Wang Wentaomet with the CEO of Apple, Tim Cookwhich highlighted China’s role in the company’s growth, promising to increase investment in R&D and the supply chain.
Ma stated that, unlike American politicians, who see containing China as a tool of influence, the business sector understands the complementarity of the Chinese and American economies. Gao stressed that imposing restrictions will distort market flow and impact economic relations between China and the US.
Gao warned that once restrictions are implemented, US companies will lose one of the most dynamic markets in the short term, and encouraged the US to listen to the business community, avoiding unilateralism.
With information from Global Times*
Source: https://www.ocafezinho.com/2024/10/30/china-resiste-a-sancoes-americanas-e-alerta-eua-ficam-sem-saida/
