America's 46th and current president of the United States, Joe Biden, has issued an executive order that places new restrictions on American investments in distinctive Chinese technology firms. The directive by the president of the United States intended to address national security concerns raised by corporations involved in "sensitive technologies," which include semiconductors, quantum computing, and artificial intelligence.
The administration has characterized this policy as a precisely targeted approach designed to prevent financing some businesses that participate in specified endeavors related to these technical domains that pose the most serious national security risks.
The executive order scheduled to go into effect next year is yet another example of the United State's recent efforts to limit the dominance of Chinese technology firms. President Biden and his predecessor, Donald Trump, have previously placed significant restrictions on Huawei. The United States has also taken measures to limit the sale of supercomputing technology to Chinese enterprises, to hinder China's access to modern chip production equipment.
President Joe Biden's executive order highlights that advancements in sensitive technological sectors have the potential to accelerate the growth of superior computing capabilities. These skills could enable novel applications with significant national security ramifications. These could include the development of more complex weaponry, decoding cryptographic codes, and other utilities that could provide some countries with military advantages.
The US executive order relies on comprehensive investigations conducted by the US Trade Representative (USTR) in 2017. This research revealed the catastrophic effects of China's aggressive technical approach to the US technology industry. Moreover, given the inverse requirement to protect national interests while demonstrating respective dominance in the sophisticated domain of global technological competitiveness, one would reasonably conclude that this move was motivated by rivalry.