US President Joe Biden on Wednesday signed an executive order to regulate United States investments that may accelerate the success of sensitive technologies in China.
Declaring it a national emergency, Biden said rapid advancement in semiconductors and microelectronics, quantum information technologies, and artificial intelligence significantly enhances the ability of countries like China to conduct activities that threaten the national security of the United States.
"Advancements in sensitive technologies and products in these sectors will accelerate the development of advanced computational capabilities that will enable new applications that pose significant national security risks," Biden said.
"The development of more sophisticated weapons systems, breaking of cryptographic codes, and other applications could provide these countries with military advantages."
The executive order authorises the US treasury secretary to prohibit or restrict certain US investments in China.
Further, Biden tasked the treasury to issue regulations that require US citizens to provide notification of information concerning certain transactions involving China.
Biden said countries like China eliminate barriers between civilian and commercial sectors and military and defence industrial sectors for the purposes of achieving military dominance.
He said they have achieved this, "not just through research and development, but also by acquiring and diverting the world’s cutting-edge technologies."
"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," Biden said.
In addition, he said that countries like China are exploiting or have the ability to exploit United States outbound investments, including certain intangible benefits that often accompany United States investments and that help companies succeed.