Beijing formally protests US clampdown on technology investments in China

China has presented “solemn remonstrances” to the United States after the new measures decided to limit investment in Chinese technology, towards which it has expressed “strong dissatisfaction and firm opposition”, assuring that it “will pay close attention to relevant developments and will resolutely safeguard its rights and interests”. In a statement from the Foreign Ministry, a spokesman said that, “under the pretext of national security”, the US aims to “deprive China of its right to development and to safeguard its hegemony and its interests. This is pure economic coercion and technological bullying”.

President Biden’s move

The move by the United States, continues the note from Beijing’s Foreign Ministry, “has seriously violated the principles of the market economy and fair competition, created turbulence in the international economic and commercial order, shaken the stability of industrial chains and global supplies”, “seriously damaging the interests of China”, of the US itself and of the global business community. China, he continues, “urges the US to seriously keep the promise of US President Joe Biden not to want the decoupling between the two economies and not to hinder China’s economic development. At the same time, the hope is that Washington will stop to “politicise, instrument and weaponize economic, trade and technological issues”, by lifting “immediately the wrong decisions and investment restrictions in China” in order to foster “economic and trade cooperation in a favorable environment”. China expresses serious concern and reserves the right to take measures,” the statement concluded, without mentioning specific countermeasures.

“National Security Reasons”

President Biden’s decision yesterday to clamp down on American investment in China in the hi-tech sector, according to an administration official, was dictated by “national security and not economic” reasons. The limits imposed in the executive order concern semiconductors, quantum and some artificial intelligence systems. The goal of the measure, administration representatives explain, is to reduce the contribution of American companies to technological research in countries that cause “concern” in terms of security for the United States, and “to protect technologies that are crucial for the future generation of military innovations”. “The Biden administration – underlines the White House – is committed to keeping America safe and defending national security by protecting technologies that are crucial for the next generation of military innovation”.