The order has been in the works for some time and will undergo a public comment period. Despite the Biden administration's insistence that these measures are not intended to limit China's economic growth, the US has halted trade with the country in areas that would benefit its AI and chip sectors. This comes as China's foreign investments hit a 25-year low in Q2, and its economy shows signs of deflation, increasing calls for more fiscal stimulus.
Key takeaways:
- President Biden is set to announce an executive order that will limit investments in certain Chinese technology companies, including those involved in artificial intelligence, quantum computing, and semiconductors.
- The move is part of the White House's efforts to limit Beijing from developing advanced military technology and to halt the flow of US dollars and technical expertise to China.
- Despite the US insisting that these measures aren't meant to limit China's economic growth, they have halted trade that would enrich China's AI and chip sectors.
- China's foreign investments have plunged to a 25-year low in the second quarter, and the country's economy is showing signs of deflation, leading to calls for more fiscal stimulus.