Biden announces curbs on US investments in China ---- By Agence France-Presse

WASHINGTON, D.C.: US President Joe Biden on Wednesday issued an executive order aimed at restricting certain American investments in sensitive high-tech areas in China — a move Beijing blasted as being "anti-globalization." The long-anticipated rules, expected to be implemented next year, target sectors like semiconductors and artificial intelligence, as Washington seeks to limit access to key technologies. "The commitment of the United States to open investment is a cornerstone of our economic policy and provides the United States with substantial benefits," Biden said in a letter to Congressional leaders announcing the executive order. "However, certain United States investments may accelerate and increase the success of the development of sensitive technologies and products in countries that develop them to counter United States and allied capabilities." The program is set to prohibit new private equity, venture capital and joint venture investments in advanced semiconductors and some quantum information technologies in China, according to the Treasury Department. "The outbound investment program will fill a critical gap in the United States' national security toolkit," a senior government official said on condition of anonymity. "What we're talking about is a narrow and thoughtful approach as we seek to prevent (China) from obtaining and using the most advanced technologies to promote military modernization and undermining US national security." The Treasury is considering a notification requirement for US investments in Chinese entities involved in less advanced semiconductors, and activities relating to certain types of artificial intelligence. China could exploit US investments to further its ability to produce sensitive technologies critical to military modernization, the Treasury Department said. But it anticipates creating an exception for certain US investments into publicly traded securities and transfers from US parents to subsidiaries. China's foreign ministry blasted the move as an attempt to "engage in anti-globalization and de-sinicization," warning that China would "resolutely safeguard its own rights and interests." "Beijing is strongly dissatisfied and firmly opposes the United States' insistence on introducing restrictions on investment in China, and has lodged solemn representations with the United States," the ministry said in a statement. Chilling effect? While the volume of dollars or numbers of transactions covered by a ban or notification regime are likely to be quite small, it does not necessarily mean the overall impact will be limited, said Emily Benson, director of the Project on Trade and Technology at the Center for Strategic and International Studies (CSIS). "It's possible that while they're not directly subject to bans, companies will rethink the nature of their investments and that could have a chilling effect on bilateral investment over time," Benson told Agence France-Presse. The latest restrictions come shortly after visits by several high-level US officials to China as Washington and Beijing aim to stabilize ties. During Treasury Secretary Janet Yellen's trip to the Chinese capital last month, officials from both sides talked about what such curbs might look like, and she told reporters that any new moves would be implemented in a transparent way. "I emphasized that it would be highly targeted and clearly directed narrowly at a few sectors where we have specific national security concerns," Yellen said at the time. She added that she wanted to allay fears that Washington would implement measures with broad-based impacts on the Chinese economy. Nicholas Lardy, non-resident senior fellow at the Peterson Institute for International Economics (PIIE), noted that "the share of investment in China that's been financed by foreign capital in recent years is about one to two percent." "If you want to have an impact, you've got to get other countries that are making these kinds of investments in China to have a similar regime," he said. On Wednesday, a senior government official said key allies and partners have recognized the importance of this issue and "some are seeking to align" their policy approaches. Outbound investment curbs would not represent an all-out effort to prevent Washington and Beijing from cooperating more deeply, Benson noted. But "the administration has been trying to land high-level meetings with Chinese officials and it will fall on the US to really demonstrate through targeted language that this is not going to cause huge disruption in investment," she said.

Comments

Post a Comment

Popular posts from this blog

PCG: China’s bullying in West Philippine Sea undermines international law --- Ghio Ong - The Philippine Star

MANILA, Philippines — Letting China sustain its aggression in the West Philippine Sea would make other countries doubt the strength of international law currently being asserted by the Philippines, Commodore Jay Tarriela of the Philippine Coast Guard (PCG) said. “Allowing China to blatantly disregard the established rules-based order threatens the very foundation that we all depend on,” he wrote in a post on X last Tuesday. He added, “If we permit this, countries worldwide may forget why this order was created in the first place. Nations could begin to doubt the significance of adhering to international law if powerful bullies can easily violate it.” Tarriela also said defiance of other countries to a rules-based order would result in the prevalence of cruelty. He wrote, “This could lead us back to a time when might makes right, undermining the global structures that keep human greed, savagery and barbarism in check. Such a scenario would not only invite challenges from aggressive ...
Read more

China ships maintain presence in key West Philippine Sea areas --- Michael Punongbayan - The Philippine Star

STAR / Michael Varcas MANILA, Philippines — While Chinese vessels in the West Philippine Sea (WPS) have decreased in number, they have maintained a presence in three key land features where naval and coast guard ships have intensified operations in the past seven days, according to the Philippine Navy. Latest monitoring by the Philippine Navy showed armed ships of the People’s Liberation Army Navy (PLAN) maintaining a menacing presence around the grounded BRP Sierra Madre in Ayungin Shoal, Panatag Shoal and Escoda Shoal. According to the Philippine Navy, there are 17 Chinese military vessels and 28 China Coast Guard (CCG) boats spotted inside the country’s exclusive economic zone (EEZ) between Sept. 23 and 30, or one vessel more than in the previous week Sept.17-23. Five of the warships were seen roaming around the vicinity of Escoda Shoal, along with 10 CCG vessels and 12 maritime militia vessels (MMVs). There are also two PLAN ships in Ayungin Shoal as well as 10 CCG boats and 12...
Read more

Social media seen as cause of rising intermarriages --- Helen Flores - The Philippine Star

MANILA, Philippines — The Commission on Filipinos Overseas (CFO) sees social media as the main reason for the rising number of Filipinos marrying or becoming partners of foreign nationals. In 2022, the CFO recorded 6,854 marriages or partnerships with foreign nationals, a 40.1 percent increase from the 4,891 “intermarriages” recorded in 2021. “First of all, what we see in the increase in the marriage rate of Filipinos or Filipinos with foreign partners is because of social media, (that) is number one; matchings; letters, introduction of their friends,” CFO chairperson Romulo Arugay said at the Bagong Pilipinas Ngayon public briefing yesterday. Arugay said the agency has been registering a high number of intermarriages since 2007, but the figures went down during the COVID-19 pandemic. From over 6,500 Filipinos who married foreign nationals, only 600 are men, he said. Most of them are married to Americans, Japanese, Germans, Canadians and Australians, Arugay said. Arugay warned Fi...
Read more