China’s ‘Solemn Representations’ to US on Investment Restrictions
In a recent development, China’s foreign ministry has expressed strong dissatisfaction and firm opposition to the United States’ decision to introduce restrictions on investment in Chinese technology. The ministry has lodged solemn representations with the United States, highlighting serious concerns about the implications of these measures on global industrial and supply chains.
The move, announced by President Joe Biden during his multi-state tour to promote the revival of American manufacturing, is aimed at restricting certain US investments in sensitive high-tech sectors in China, including semiconductors, quantum computing, and artificial intelligence (AI). These restrictions are expected to take effect next year and have raised concerns in Beijing about their impact on international trade and the normal operation decisions of companies.
The Chinese foreign ministry spokesperson emphasized that President Biden’s executive order deviates from the market economy and fair competition principles that the US has historically promoted. Beijing argues that this decision damages the international trade order and poses a significant threat to the security of global industrial and supply chains.
The timing of these restrictions is significant, as President Biden’s administration seeks to bolster its position vis-a-vis China on multiple fronts, including military, economic, and technological aspects. These measures come at a critical juncture, with the Biden administration’s focus on job creation and economic growth, as the 2024 reelection campaign gains momentum.
While President Biden touted his government’s success in boosting manufacturing jobs in the renewable energy sector during his tour, the executive order on investment restrictions has drawn the attention of both domestic and international stakeholders. China’s response underscores its concerns about the disruption to global supply chains and the potential impact on the international trade landscape.
As this situation unfolds, it is essential to monitor the evolving relationship between China and the United States, particularly in the realms of technology, trade, and economic cooperation. The outcome of these developments will not only impact the two countries’ bilateral relations but could also have broader implications for the global economic order.
#BREAKING China says US investment measures ‘severely disrupt’ global supply chains pic.twitter.com/cJ0f8gSpvf
— AFP News Agency (@AFP) August 10, 2023
