China’s Ministry of Commerce indicated on Thursday that it would respond, if necessary, to the Biden administration’s decision to block US investment in high-tech Chinese.
Asked about US Commerce Secretary Gina Raimondo’s plans to visit China, a spokesman declined to confirm the timing but said the two countries were still in close contact.
Chinese and US flags fly on The Bund before US trade representatives meet Chinese delegations for talks in Shanghai, China July 30, 2019.
BEIJING – China’s Commerce Ministry indicated on Thursday that it would respond, if necessary, to the Biden administration decision’s decision’s decision to block US investment in Chinese high-tech.
China’s Ministry of Commerce met with businessmen to understand the impact of the law, spokesman Shu Jueting said in Mandarin, translated by CNBC.
“Based on that, we will conduct a comprehensive analysis on leader influence, and take necessary action based on the results of the analysis,” Shu said.
US President Joe Biden last week signed an executive order restricting US investment in China’s semiconductor, quantum computer, and intelligence industries due to national security concerns.
China is considering countermeasures to Biden’s
The world follows China ahead of the EU in many areas of AI law, says Professor
The Bank is overseeing implementation and is currently gathering public input to establish regulatory standards.
Asked about US Commerce Secretary Gina Raimondo’s plans to visit China, Shu declined to confirm the timing but said the two countries are still in close contact.
One senior Republican vocal about the national security threat posed by China says White House plans to curb outward investment in China’s military and defense industries don’t really address the problem.
President Joe Biden, who is expected to take office next year, is “taking an important step in the right direction,” but that must result in public investment and the Chinese government and companies supporting the Chinese military or engaging in human rights abuses. Reputation. Mike Gallagher, he told CNBC’s “Squawk Box” on Friday.
Regulatory rules also require investors in the United States to hold large amounts of capital. and they notify the Department of the Treasury that it relates to certain technologies that may pose a threat to the United States.
The Wisconsin Republican Party is chairman of the House Select Committee on the Chinese Communist Party and a leading figure in the House on the risks of US investment in China.
Americans who invest in corporate stocks
Mutual funds, ETFs, and public market bonds run the risk of making unwitting investments in technologies that pose national security risks if they are based in US financial institutions. Investors and companies registered to support CCP.
Gallagher argues that restrictions on defense investment can be used for national security and as a weapon to undermine China’s economic and military power by withdrawing funds.
“The CCP is the enemy, and you cannot defeat or deter the enemy by pouring billions of dollars into their military and technology programs,” he said.
He added that investments such as those in American retirement plans should not be based on returns to companies that could threaten the long-term stability of investors in the plan.
“We have to ask ourselves whether we want a retirement, and the general retirement health of millions of Americans, to depend on successful investments in things like [China’s] airports, mines, and military aircraft.”
China is now the US’ third largest trading partner.
Gallagher’s comments come as the Chinese government announced on Thursday that it was considering countermeasures against Biden’s order.
Last month, the CCP House Committee sent an investigation to the US global investment firm MSCI
and BlackRock
Seeking more information on how the company can guide US investment in the future. to Chinese companies blacklisted by the committee.
“We don’t think that Blackrock or MSCI should put American dollars into a few companies like this, we should close the loopholes and at least make sure that the American people don’t know whether “Support is unknown for the Chinese Communists” or not, Gallagher said Friday.
MSCI provides investment data and analysis to help clients make investment decisions in various global markets. In a statement to CNBC, the agency said it “works closely with the House Select Committee” and “complies with all applicable US laws.”
China is considering countermeasures to Biden’s
BlackRock is the world’s largest asset manager and has previously said it would offer its clients the option to avoid investing in certain Chinese sectors. The company told CNBC on Friday that it was following the rules and that “the majority of our customers’ investment in China comes from investment funds.”
The executive order gives Treasury Secretary Janet Yellen broad powers to determine what constitutes a covered investment—broad discretion, according to Gallagher.
There is fierce debate about how to apply these anti-White House sanctions to the Chinese suspects on Capitol Hill, including both Republicans and a large group of Democrats.
Yellen has long indicated that she intends to keep any investment restrictions “targeted” to protect US national security but made it clear they are not meant to damage the economy.
The company had the opportunity to consider the new regulation of the Biden administration that intends to put a limit on investments made in certain technologies in China.
President Joe Biden signed an executive order
(EO) this week addressing US investment in semiconductors and microelectronics, quantum information technology, and artificial intelligence in China. This will restrict certain investments in technology-related companies that put national security at risk and will require notification for other sensitive investments, according to the EO. The program aims to establish export controls aimed at China, which the government implemented last year.
The Biden administration wants to prevent countries like China from investing US money in technologies. Deemed critical to the development of military, surveillance, intelligence, and cyber capabilities. The Department of Finance will lead the legal process, which will include an opportunity for public comment.
The administration is aiming to invest in the technology for purposes beyond money. Jessica Brandt, director of AI policy and new technology strategy at the Brookings Institution.
“It’s not just money. China can get a lot of money,” said Brandt. “The problem is that often these types of investments come with advice. And ways to develop the kind of knowledge that will help them make progress in this important technology.”
US and China compete in policy, national security, and technology
The U.S. competes with China’s approach in terms of trade policy, Brandt said. Instead of issuing rules for companies to follow to protect national security interests. The US allows companies to consider and shape investment rules.
Brandt said the rules are designed to be flexible, leaving room for future changes. However, the full impact for investors is still unclear. And it is likely to meet resistance from all quarters,” he said.
Think about what your relationship with China is and what industry, in terms of technology. And figure out where you stand in terms of that strategy.
Anthony Rapa
President, International Business Practice Group, Rome Blank
“Companies obviously won’t like new requirements that could make it harder for them to do business,” Brandt said. “China will not like these kinds of restrictions on capital and knowledge, no matter how strong the border is. China’s players will say it will not go well.”
Although the regulation has not yet entered into force and will not change immediately. Companies that have or are planning to invest in China will begin to consider this system. Anthony Rapa, the president of the House Legal Services Committee, said. a foreign trade union
China is considering countermeasures to Biden’s
Companies should anticipate whether and to what extent China will consider countermeasures against Biden’s actions. How partners such as the EU will react, and how that may affect trade ties with China.
“Think about what your relationship with China is in terms of industry. And technology, and find out where you are in terms of this strategy,” he said.
At the top of the agenda, Congress could pass legislation on the same topic, Rapa said. Legislators passed an investment immigration law in July that targets the same technologies listed in the EO.
Makenzie Holland is a columnist covering federal regulations and big technology. Before joining TechTarget Editorial, he was a general reporter for the Wilmington Star News. And a crime and education reporter for the Wabash Plain Dealer.
