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Mark Schiefelbein/Pool via REUTERS/File Photo Acquire Licensing RightsWASHINGTON, Oct 6 (Reuters) - The U.S. Commerce Department on Friday added 42 Chinese companies to a government export control list over their support for Moscow's military and defense industrial base - support that includes the supply of U.S.-origin integrated circuits. Another seven entities from Finland, Germany, India, Turkey, United Arab Emirates and the United Kingdom were also added to the trade export control list. The circuits include microelectronics that Russia uses for precision guidance systems in missiles and drones launched against civilian targets in Ukraine, the Commerce Department said in a statement. "The United States should immediately correct its wrong practices and stop its unreasonable suppression of Chinese companies," China's Ministry of Commerce said in a statement. Suppliers must then be granted generally hard-to-get licenses before shipping goods to entities on the list.
Persons: Janet Yellen, Mark Schiefelbein, Export Enforcement Matthew Axelrod, David Shepardson, Karen Freifeld, Mike Stone, Susan Heavey, Andrea Ricci, Edwina Gibbs Organizations: Rights, U.S . Commerce Department, United Arab Emirates, Commerce Department, U.S, Export Enforcement, Ministry of Commerce, Washington, Thomson Locations: United States, Diaoyutai, Beijing, China, U.S, Finland, Germany, India, Turkey, United Arab, United Kingdom, Russia, Ukraine, Russian
EU to assess tech security risks and consider controls
  + stars: | 2023-10-03 | by ( ) www.reuters.com   time to read: +2 min
The European Commission said on Tuesday it had established a list of four technologies, as well a further six to look into later, as part of the European Economic Security Strategy it unveiled in June. The Commission stresses that it must first carry out a risk assessment with the EU's 27 members and consulting companies before determining any measures. "The risk assessment will be country agnostic, but we will take into account geopolitical factors to determine how severe those risks are," an EU official said. In advanced semiconductor technologies, areas of focus include microelectronics and chip-making equipment, in AI data analytics and object recognition, and for quantum cryptography, communications and sensing. The EU has previously carried out an assessment of the security of its 5G networks, which has led some EU countries to restrict use of equipment made by China's Huawei and ZTE.
Persons: China's, Philip Blenkinsop, Jan Harvey Organizations: European Union, European, European Economic Security, EU, China's Huawei, ZTE, Thomson Locations: BRUSSELS, China, EU, U.S, Japan, Britain, Australia
Based in upstate New York, GlobalFoundries isn't a household name because it's manufacturing semiconductors that are designed and sold by other companies. "Look at every electronic device in your house, and I would bet you money that every one of those devices has at least one GlobalFoundries chip in it," Thomas Caulfield, GlobalFoundries CEO, told CNBC. GlobalFoundries chips are inside everything from smartphones and cars to smart speakers and Bluetooth-enabled dishwashers. Although GlobalFoundries' chips are considered legacy nodes, the process and resources needed are still incredibly complex. GlobalFoundries' Fab 8 in Malta, New York, where Equipment Engineering Manager Chris Belfi led CNBC's Katie Tarasov on a tour on September 5, 2023.
Persons: GlobalFoundries, it's, Thomas Caulfield, They're, GlobalFoundries isn't, Caulfield, Abu, Moorhead, Jerry Sanders, Katie Tarasov, Carlos Waters, Daniel Newman, couldn't, TSMC, China's, STMicroelectronics, Hui Peng Koh, that's, Chris Belfi Organizations: HK GM LMT, GlobalFoundries, CNBC, Bluetooth, Nvidia, Taiwan Semiconductor Manufacturing Company, Devices, AMD, Chartered Semiconductor, Nasdaq, Futurum, U.S, Semiconductor Manufacturing International, Samsung, fabs, United Microelectronics, we've, Upstate Locations: New York, China, U.S, Singapore, Germany, France, Malta , New York, Dresden, Malta, Vermont, South Korea, Taiwan, TSMC, Crolles, Chengdu, Upstate New York, Europe, Koh, Arizona, Asia
The flags of the United States and China fly from a lamppost in the Chinatown neighborhood of Boston, Massachusetts, U.S., November 1, 2021. REUTERS/Brian Snyder/File photo Acquire Licensing RightsSINGAPORE, Sept 29 (Reuters) - China's international trade council has formally asked the United States to "carefully consider" rules that ban or restrict U.S. investments in China's tech sector, state television reported on Friday. "That not only gives rise to transaction risks and compliance cost...but also damages the highly inter-dependent global industrial chain," the chamber added. Biden's order was aimed at protecting national security and preventing U.S. capital from aiding China's military. Reporting by Chen Aizhu; editing by Miral FahmyOur Standards: The Thomson Reuters Trust Principles.
Persons: Brian Snyder, Joe Biden, , Chen Aizhu, Miral Organizations: REUTERS, Rights, China Council, Promotion of International Trade, Ministry of Commerce, Thomson Locations: United States, China, Chinatown, Boston , Massachusetts, U.S, Rights SINGAPORE
The Treasury Department subsequently kicked off a rule-making process to implement the order, and financial firms have been rushing to meet a Sept. 28 to provide input. "It could apply to companies that are outside of China but are subsidiaries of Chinese companies or controlled by a Chinese person." While the U.S. already has restrictions on some Chinese investments in the U.S. and U.S. investments in China, the order creates a new program. The program proposes exempting publicly traded securities and index and mutual funds, but financial firms want those securities to be more tightly defined. Financial firms say they support the administration's national security goals but worry about increased liability and the economic costs of restricting capital flows.
Persons: Florence Lo, Joe Biden, Timothy Keeler, Mayer Brown, Jen Fernandez, Sidley Austin, Jay Clayton, Sullivan, Cromwell, Keeler, Peter Matheson, Fernandez, Pete Schroeder, Carol Mandl, Michelle Price, Deepa Babington Organizations: REUTERS, WASHINGTON, Treasury Department, Foreign Investment, Treasury, Former Securities and Exchange, DE, Financial, U.S, Securities Industry, Financial Markets Association, Thomson Locations: China, U.S, United States
Hauwei also unveiled new smartphones in recent weeks that use advanced chips, which analysts say are domestically made. "These surveillance chips are relatively easy to manufacture compared to smartphone processors," said the source familiar with the surveillance camera industry's supply chain, adding that HiSilicon's return would shake up the market. A key factor is that the company appears to have worked around U.S. restrictions on chip design software. Huawei has not commented on the phone's 5G capabilities or how it produced the advanced chip. The United States has no evidence that Huawei can produce smartphones with advanced chips in large volumes, U.S. Commerce Secretary Gina Raimondo said on Tuesday.
Persons: Hauwei, Frost, Sullivan, HiSilicon, Taiwan's TSMC, Gina Raimondo, Dan Hutcheson, Shanghai Newsrooms, Fanny Potkin, Gerry Doyle Organizations: Huawei Technologies, Huawei, Securities, Novatek Microelectronics Corp, Semiconductor Manufacturing International Corp, HK, Kirin, United, . Commerce, Cadence Design Systems, Synopsys Inc, Siemens, Thomson Locations: BEIJING, SHANGHAI, U.S, Kirin, China, United States, Beijing, Shanghai, Singapore
Huawei also unveiled new smartphones in recent weeks that use advanced chips, which analysts say are domestically made. "These surveillance chips are relatively easy to manufacture compared to smartphone processors," said the source familiar with the surveillance camera industry's supply chain, adding that HiSilicon's return would shake up the market. A key factor is that the company appears to have worked around U.S. restrictions on chip design software. HiSilicon mainly supplies chips for Huawei equipment but has had external customers such as Dahua Technology (002236.SZ) and Hikvision (002415.SZ). The United States has no evidence that Huawei can produce smartphones with advanced chips in large volumes, U.S. Commerce Secretary Gina Raimondo said on Tuesday.
Persons: Florence, Frost, Sullivan, HiSilicon, Taiwan's TSMC, Gina Raimondo, Dan Hutcheson, Shanghai Newsrooms, Fanny Potkin, Gerry Doyle Organizations: Security China, REUTERS, Rights, Huawei Technologies, Huawei, Securities, Novatek Microelectronics Corp, Semiconductor Manufacturing International Corp, HK, Kirin, United, . Commerce, Cadence Design Systems, Synopsys Inc, Siemens, Thomson Locations: Beijing, China, Rights BEIJING, SHANGHAI, U.S, Kirin, United States, Shanghai, Singapore
WASHINGTON (AP) — The Biden administration plans to increase scrutiny of the investment plans of foreign-owned companies operating in the United States. “National security is a foremost priority, and we deploy a wide range of tools to safeguard it,” Treasury Secretary Janet Yellen said Thursday. The federal government reviews and can block business activity of non-U.S. companies through the Committee on Foreign Investment in the United States, also known as CFIUS. At a conference dedicated to the committee, Yellen emphasized that CFIUS is adapting to a changing global economy as national security issues related to China are a primary consideration. “As new threats and vulnerabilities emerge, our national security priorities shift in response,” Yellen said.
Persons: , Biden, Janet Yellen, Yellen, ” Yellen, “ We've, ByteDance, LIV, Paul Rosen, ” Rosen, Joe Biden, Donald Trump, , Patrick McHenry Organizations: WASHINGTON, Foreign Investment, State, Justice, Energy, Commerce, Twitter, PGA, U.S, Washington, Financial Locations: United States, U.S, China, Beijing, R
The Pentagon has provided Patriot air defense systems and cajoled allies to provide S-300 air defense ammunition, both of which have proven effective. It has also provided other air defenses like the Avenger system and the Hawk air defense system. But Ukraine does not have enough air defense systems to cover the entire country, and must pick the sites it defends. Today, Russian officials have remade their economy to focus on defense production. As a result, military production has not only recovered but surged.
Persons: Russia’s Organizations: Pentagon Locations: Moscow, Russia, Kyiv, Ukraine, United States, Washington
Louie added that he doesn't "know of a single major fund out there that isn't thinking about disruptive tech investing in the U.S., investing in defense tech, investing in microelectronics and AI in the next generation and next iteration." Stephen McCarthy | Sportsfile | Getty ImagesVC funding in aerospace and defense tech has shot up in recent years, according to data compiled by PitchBook for CNBC. The poster child for U.S.-focused defense tech is Anduril Industries, co-founded in 2017 by Oculus Rift designer Palmer Luckey. They can just look at the untapped potential in defense tech. "The government's becoming a better customer," said Shah, who previously served as managing partner of the Defense Department's Defense Innovation Unit, which seeks to accelerate the use of emerging technologies.
Persons: Hadrian, Chris Power Hadrian, Joe Biden, Gilman Louie, Alsop, Louie Partners, He's, Louie, Biden, Lindsay Gorman, she's, Gorman, Chris Power, Power, Hadrian's, Peter Thiel's, Palmer Luckey, Stephen McCarthy, Sportsfile, Anduril, Richard Jenkins, Bilal Zuberi, Lux, Zuberi, Jenkins, Saildrone didn't, Paul Kwan, Catalyst, What's, Kwan, Kyle Harrison, Saul Loeb, Raj Shah, Josh Wolfe, There's, Shah, Wolfe Organizations: Chris Power Hadrian Automation, America's Frontier, U.S, Marshall Fund's Alliance, Securing Democracy, Lux Capital, Fund, Andutil Industries, Enercare Center, Getty, PitchBook, CNBC, Industries, Oculus, Blue Force Technologies, Oceanic, Atmospheric Administration, Navy, Coast Guard, Google, Intel, AFP, Shield, Lux, Defense Department's Defense Innovation Unit, Power, YouTube, China Locations: China, U.S, America, Torrance , California, Los Angeles, Toronto, Canada, Ukraine, New Albany , Ohio, Silicon
REUTERS/Aly Song/File Photo Acquire Licensing RightsSHENZHEN, China/SHANGHAI, Aug 30 (Reuters) - Chinese chip stocks rallied on Wednesday following Huawei Technologies' (HWT.UL) launch of its new Mate 60 Pro phone, as investors speculated it could be using a 5G capable chip which, if true, would mark a win for China's local semiconductor sector. On Tuesday, the company began selling its Mate 60 Pro around midday for 6,999 yuan ($960) in an unusually low-key fashion, having given no advance notice or conducted advertising. The specifications provided for the Mate 60 advertised its ability to make satellite calls, but provided no information on the power of the chipset inside. Huawei, whose woes with Washington have become a key flashpoint in U.S.-China relations, declined to comment on whether the phone was 5G capable but said in a statement the Mate 60 series was its most powerful Mate model ever. CHIP SHARES JUMPChina's semiconductor sector (.CSIH30184) jumped more than 2.5% on Wednesday, sending weekly gains to roughly 8%.
Persons: Aly, Lu Deyong, Lu, Nicole Peng, David Kirton, Jason Xue, Mo Yelin, Lincoln Organizations: Huawei, Artificial Intelligence, REUTERS, Rights, Huawei Technologies, Reuters, chipmaking, Semiconductor Manufacturing International, Pro, Staff, Washington, China's Semiconductor Manufacturing International Corp, Sai MicroElectronics Inc, Thomson Locations: Shanghai, China, Rights SHENZHEN, SHANGHAI, Washington, Beijing, Shenzhen, Kirin, Mo
Mark Schiefelbein/Pool via REUTERS/File Photo Acquire Licensing RightsWASHINGTON, Aug 16 (Reuters) - A bipartisan group of former senior U.S. national security officials urged Congress on Wednesday to dedicate resources to President Joe Biden's recent order restricting some outbound U.S. investment to China, calling it a top priority. The further development of outbound investment transparency and review should be "among your top foreign policy priorities", they wrote, calling it essential that Congress commit resources to implementation. Biden's order, issued last week but expected to be implemented next year, is aimed at preventing American capital and expertise from helping China develop technologies that could support its military modernization and undermine U.S. national security. Peter Harrell, a former Biden National Security Council official, and former commanders of the U.S. Indo-Pacific Command Harry Harris and Philip Davidson, were among the other officials who endorsed the letter. China has said it is "gravely concerned" by the order, though some U.S. lawmakers have criticized it as having too many loopholes.
Persons: Janet Yellen, Mark Schiefelbein, Joe Biden's, Trump, Matt Pottinger, Colin Kahl, , aren't, Chuck Schumer, Kevin McCarthy, Peter Harrell, Pacific Command Harry Harris, Philip Davidson, Michael Martina, Sharon Singleton Organizations: Rights, U.S, Reuters, Democratic, Republican, Treasury, Biden National Security Council, Pacific Command, Thomson Locations: United States, Diaoyutai, Beijing, China, U.S
Investors look at an electronic board showing stock information at a brokerage house in Shanghai, China, March 7, 2016. REUTERS/Aly Song/File Photo Acquire Licensing RightsSHANGHAI, Aug 16 (Reuters) - Anxious Chinese retail investors are bombarding listed companies with questions about their exposure to Zhongrong International Trust Co after missed payments by the trust company triggered fears of contagion across the country's financial system. Zhongrong managed assets worth 785.7 billion yuan ($107.69 billion) at the end of 2022, out of which 629.3 billion yuan were linked to trust products, according to its latest annual report. Its missed payments had added to stress in the financial sector from the country's worsening property crisis. One investor on Wednesday asked Shanghai-listed New China Life Insurance Company (601336.SS) - which owned 14 billion yuan ($1.92 billion) of products from Zhongrong at the end of last year - whether there was a risk of missed payments.
Persons: Aly, Huang Yan, Jason Xue, Tom Westbrook, Tomasz Janowski, Jason Neely Organizations: REUTERS, Rights, Zhongrong International, Co, Investors, Shanghai QiuYang, Zhongzhi Enterprise Group, Wednesday, Shanghai, China Life Insurance, KBC Corp, Bescient Technology, Shanghai New Vision Microelectronics, Nanhua, Jiangsu Azure Corp, Topsperity Securities, Thomson Locations: Shanghai, China, Shenzhen, Zhongrong, Jiangsu, Singapore
The executive order along with anti-China moves by lawmakers and agencies means the overall policy is unclear and riddled with landmines. "It will be very important to monitor how this executive order is being received in Congress." The executive order affects venture funds and private equity firms that invest in Chinese companies in semiconductors and microelectronics, quantum information technologies and artificial intelligence. MORE RESTRICTIONSSome of the investors said the administration's approach in framing the executive order had been more consultative. U.S. Representative Maxine Waters, Biden's fellow Democrat, said on Friday the executive order and rulemaking on outbound investment must be "broadened and strengthened."
Persons: Florence Lo, Biden, Anthony Rapa, Blank, Blackrock, MSCI, Maxine Waters, Paritosh Bansal, Andrea Shalal, Laura Matthews, Anna Driver Organizations: REUTERS, Fund, Investors, Blackrock, U.S, Chinese Communist Party, The, Vanguard, Morningstar, Blackrock's, Reuters Graphics Reuters, Thomson Locations: China, U.S, Beijing, Washington, MSCI, New York
UK considers response to US ban on tech investments in China
  + stars: | 2023-08-10 | by ( ) www.reuters.com   time to read: +2 min
A worker adjusts British and China (R) national flags on display for a signing ceremony at the seventh UK-China Economic and Financial Dialogue "Roundtable on Public-Private Partnerships" at Diaoyutai State Guesthouse in Beijing, China September 21, 2015. REUTERS/Andy Wong/File PhotoLONDON, Aug 10 (Reuters) - Britain said on Thursday it was weighing how to respond to a decision by U.S. President Joe Biden to prohibit some tech investments in China, adding it was continuing to assess potential national security risks. The U.S. government has said the measures are designed to address national security risks. A spokesperson for Prime Minister Rishi Sunak's government said the executive order gave important clarity on the U.S. approach: "The UK will consider these new measures closely as we continue to assess potential national security risks attached to some investments." British investment in Hong Kong stood at 77.6 billion pounds.
Persons: Andy Wong, Joe Biden, Biden, Rishi Sunak's, James, Sunak, Kate Holton, William Schomberg, Sharon Singleton Organizations: China Economic, Public, REUTERS, U.S, Treasury, Thomson Locations: China, Diaoyutai, Beijing, Britain, U.S, London, Hong Kong, Xinjiang, United States
The order is aimed at preventing American capital and expertise from helping China develop technologies that could support its military modernization and undermine U.S. national security. China said on Thursday it is "gravely concerned" about the order and that it reserves the right to take measures. The White House said Biden consulted allies on the plan and incorporated feedback from Group of Seven nations. "Today the United States is taking a strategic first step to ensure American investment does not go to fund Chinese military advancement." Last year, total U.S.-based venture-capital investment in China plummeted to $9.7 billion from $32.9 billion in 2021, according to PitchBook data.
Persons: Joe Biden, Elizabeth Frantz, Biden's, Biden, Chuck Schumer, Marco Rubio, Emily Benson, David Shepardson, Andrea Shalal, Stephen Nellis, Max Cherney, Krystal Hu, Karen Freifeld, Idrees Ali, Liz Lee, Lincoln, Jonathan Oatis, Cynthia Osterman, Michael Perry Organizations: White, REUTERS, Wednesday, U.S, Treasury, Biden, Chinese Commerce Ministry, Seven, Democratic, Republicans, REPUBLICAN, The Semiconductor Industry Association, Center for Strategic, International Studies, Thomson Locations: Washington , U.S, WASHINGTON, China, U.S, Japan, Netherlands, United States, Washington, Beijing
The order is aimed at preventing American capital and expertise from helping China develop technologies that could support its military modernization and undermine U.S. national security. The White House said Biden consulted allies on the plan and incorporated feedback from Group of Seven nations. "Today the United States is taking a strategic first step to ensure American investment does not go to fund Chinese military advancement." Last year, total U.S.-based venture-capital investment in China plummeted to $9.7 billion from $32.9 billion in 2021, according to PitchBook data. The restrictions will hurt both Chinese and American businesses, interfere with normal cooperation and reduce investor confidence in the U.S., he said.
Persons: Joe Biden, Elizabeth Frantz, Biden, Chuck Schumer, Marco Rubio, Emily Benson, David Shepardson, Andrea Shalal, Stephen Nellis, Max Cherney, Krystal Hu, Karen Freifeld, Idrees Ali, Lincoln, Jonathan Oatis, Cynthia Osterman Organizations: White, REUTERS, Wednesday, U.S, Treasury, Biden, Seven, Democratic, Republicans, REPUBLICAN, The Semiconductor Industry Association, Center for Strategic, International Studies, Thomson Locations: Washington , U.S, WASHINGTON, China, U.S, Japan, Netherlands, United States, Washington
"The situation is already very bad for dollar-based funds to invest in China's tech sector. There isn't much room for things to get worse," said Beijing-based China Growth Capital partner Wayne Shiong. Biden's move will likely make China-focussed venture capital firms feel more urgency to raise yuan funds from Chinese investors, he said. In response to Biden's executive order, China's commerce ministry said it was "gravely concerned" and reserved the right to take countermeasures. But the executive order is barely going to do anything, and China escalating would risk turning a molehill into a mountain."
Persons: Florence Lo, Joe Biden's, Donald Trump, Weiheng Chen, Wilson Sonsini, Biden, Chen, Wayne Shiong, Biden's, Yuan, Pan, Trump, Derek Scissors, Kane Wu, Michael Martina, Roxanne Liu, Ziyi Tang, Yantoultra, Sumeet Chatterjee, William Mallard Organizations: REUTERS, U.S, Reuters Graphics Reuters, China Growth Capital, Chinese Academy of Social Sciences, TECH, Hua Hong Semiconductor, Analysts, American Enterprise Institute, Thomson Locations: China, U.S, HONG KONG, WASHINGTON, Beijing, Washington, Shanghai, Hong Kong, Singapore, Bengaluru
Dong Wenjie | Moment | Getty ImagesChina criticized President Joe Biden's long-awaited executive order regulating fresh U.S. investment in technology — but stopped short of issuing immediate counter measures. "China expresses its grave concern and reserves the right to implement measures," the Chinese Commerce Ministry said in the statement, according to a CNBC translation. Biden's order comes amid an escalating race for global technology supremacy. watch now"This seriously deviates from the market economy and fair competition principles that the U.S. has always advocated," the Chinese Ministry of Commerce added. The wording on Biden's executive order appears similar to a toned-down version of the initial Outbound Investment Transparency Act the Senate recently introduced.
Persons: Dong Wenjie, Joe Biden's, Prasad, Janet Yellen Organizations: Images China, Chinese Commerce Ministry, Biden, CNBC, Chinese Ministry of Commerce, Cornell University, Treasury, Senate Locations: Shanghai, Asia, China, China , Hong Kong, Macao, U.S, Japan, Netherlands, Beijing
CNBC Daily Open: The American consumer
  + stars: | 2023-08-10 | by ( Clement Tan | ) www.cnbc.com   time to read: +2 min
A view of the Stuart The Minion balloon during the 2022 Macy's Thanksgiving Day Parade on November 24, 2022 in New York City. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Biden's order appears similar to a toned-down version of the initial Outbound Investment Transparency Act the Senate recently introduced. At its earnings release, Disney reported subscriber losses continued over the last three months, declining 7.4% decline from the previous quarter — a larger loss than Wall Street expected.
Persons: Stuart, Joe Biden Organizations: CNBC, Dow Jones, Nasdaq, Federal Reserve, Department, Senate, Disney, Wall Locations: New York City, U.S, Panama
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Hong Kong's Hang Seng Index dropped 0.95%, while mainland Chinese indexes extended their losses. Markets are waiting for Thursday's July consumer price index report, which will likely show that the pace of price increases is easing — but not enough to get the Federal Reserve to retreat on its inflation fight. The Food and Agriculture Organization All Rice Price Index for July rose 19.7% from a year ago to its highest nominal value since September 2011.
Persons: Hong, Joe Biden's Organizations: CNBC, Nikkei, Dow Jones, Nasdaq, Federal Reserve, Ministry, Disney, Wall, United Nations, Agriculture, Rice, Index Locations: China, , Beijing, China , Hong Kong, Macao, Panama, United, Thailand
BRUSSELS, Aug 10 (Reuters) - The European Commission will analyse the U.S. ban on new U.S. investment in China in sensitive technologies as the issue is also important to the European Union's economic security, the EU executive said on Thursday. U.S. President Joe Biden on Wednesday signed an executive order to prohibit or restrict U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems. "We will be analysing the Executive Order closely. We are in close contact with the US administration and look forward to continued cooperation on this topic," a Commission spokesperson said in an email. "We recognise the significance of the topic, which was an important element in the recent Joint Communication on economic security."
Persons: Joe Biden, Foo Yun Chee, Andreas Rinke, Rachel More, Jason Neely, Matthias Williams, Christina Fincher Organizations: European, Wednesday, EU, Member States, Reuters, Thomson Locations: BRUSSELS, China, Russia, Berlin, Brussels
REUTERS/Elizabeth Frantz/File PhotoNEW YORK/WASHINGTON, Aug 9 (Reuters) - President Joe Biden on Wednesday signed an executive order that will narrowly prohibit certain U.S. investments in sensitive technology in China and require government notification of funding in other tech sectors. The long-awaited order authorizes the U.S. Treasury secretary to prohibit or restrict certain U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. Senate Democratic Leader Chuck Schumer praised Biden's order, saying "for too long, American money has helped fuel the Chinese military’s rise. Today the United States is taking a strategic first step to ensure American investment does not go to fund Chinese military advancement." Most investments captured by the order will require the government be notified about them.
Persons: Joe Biden, Elizabeth Frantz, Biden, Chuck Schumer, Biden's, Emily Benson, Benson, David Shepardson, Andrea Shalal, Karen Freifeld, Idrees Ali, Lincoln, Jonathan Oatis Organizations: White, REUTERS, Wednesday, U.S, Treasury, Democratic, Embassy, Reuters, Group, U.S . Department of Commerce, Center for Strategic, International Studies, Thomson Locations: Washington , U.S, WASHINGTON, China, United States, U.S, Washington, States
President Biden escalated his confrontation with China on Wednesday by signing an executive order banning American investments in key technology industries that could be used to enhance Beijing’s military capabilities, the latest in a series of moves putting further distance between the world’s two largest economies. The order will prohibit venture capital and private equity firms from pumping money into Chinese efforts to develop semiconductors and other microelectronics, quantum computers and certain artificial intelligence applications. Administration officials stressed that the move was tailored to guard national security, but China is likely to see it as part of a wider campaign to contain its rise. “The Biden administration is committed to keeping America safe and defending America’s national security through appropriately protecting technologies that are critical to the next generation of military innovation,” the Treasury Department said in a statement. A series of expanding export controls on key technologies to China has already triggered retaliation from Beijing, which recently announced the cutoff of metals like gallium that are critical for the Pentagon’s own supply chain.
Persons: Biden, , Richard M, Nixon, Henry Kissinger Organizations: Treasury Department, U.S . Locations: China, U.S, Beijing
A central processing unit (CPU) semiconductor chip is displayed among flags of China and U.S., in this illustration picture taken February 17, 2023. Following are some key details:'COUNTRIES OF CONCERN'The order lays out plans to regulate investments in certain "countries of concern," with a separate annex naming China, Hong Kong and Macau as initial targets. The outbound investment program would require notification of many investments while prohibiting only a few. It was considering requiring notification for investments in firms working on the design, fabrication, and packaging of less advanced integrated circuits. U.S. investments in Chinese production of quantum computers, development of certain quantum sensors, and quantum networking and communication systems could also be banned.
Persons: Florence Lo, Joe Biden, Janet Yellen, Andrea Shalal, Karen Freifeld, David Shepardson, Jonathan Oatis, Matthew Lewis Organizations: REUTERS, Wednesday, U.S . Treasury Department, Reuters, China, United, Treasury, European Union, Thomson Locations: China, U.S, Hong Kong, Macau, United States, Beijing, Washington, Britain, New York
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