US Plans To Tighten Rules In China And Other Overseas Investments In 2023: The Rivalry Between the Dominant Nations Deepens
The initiative has been taken in an attempt to limit the ability of China to acquire technologies that could finance its military powers. What could it mean for China?
The Biden administration has been planning to tighten rules on some overseas investments made by U.S. companies. The initiative has been taken in an attempt to limit the ability of China to acquire technologies that could finance its military powers. It has been stated by a U.S. official familiar with the matter.
The order would be issued soon by President Joe Biden and it will plan to limit American investments in China in terms of the advanced technologies that have applications in national security. It involves next-generation military capabilities that could help China to improve the accuracy and speed of decision-making in the military. It has been stated by an official who was not allowed to comment and asked to maintain anonymity.
The action taken by the White House will aim at China’s military and technology sector, specifically at a time when there has been a cold relationship between the two dominant economies/
Previously, in October, the Biden Government imposed controls on export to China to restrict the ability to access advanced chips. The latter can be utilized to make weapons, commit the abuse of human rights and improve the efficiency and speed of its military services.
The relationship between China and U.S. has been worsened by the surveillance balloon incident after weeks when the U.S. shot down the Chinese spy balloon that has entered American airspace in Montana. The Biden administration has even condemned the actions of China to help the Russian invasion of Ukraine by providing weapons.
The concerns have been addressed when the top diplomats from the group of 20 industrialized and developing nations conducted a meeting in New Delhi where they talked about the Ukraine war and concerns about China’s increasing global influence have been the topic of discussion.
China has addressed the concerns where the Foreign Ministry spokesperson has talked about the matter, stating that the members of the nations let go of the ideological bias and cold war mentality.
The administration officials have been discussing the situation with their allies as they were working on laying down the new changes for U.S. investment. The media sources have reported recently that the Treasury and Commerce department delivered reports to the lawmakers about the new plans for adopting the regulatory system to address the overseas investment in advanced technologies by the U.S.
The agencies have even stated that they planned to seek additional assistance from the investment screening program in the White House Budget. The decision is to be scheduled on March 9.
A White House Security Council has declined to comment on the matter but has mentioned that the officials of the administration have kept Congress updated on the progress in designing an approach to overseas investment. The approach will receive pushback from U.S. firms. They have even assured that while they are looking to examine rules on U.S. investment in China, they will ensure of not overreaching.
Wally Adeyemo, the Deputy Treasury Secretary has stated that the internal thing that the nation can do is to draw clear lines between what could be a competition and what concerns national security because United Nations performs well competing on a level playing field with any nation in the world.
But, they want to use the tools available in the nation to protect the national security of the country. Lawmakers have even urged Biden in the last year to establish a rigorous screening system for investments with foreign adversaries in China.
China to deepen its financial reforms to safeguard the economy:
At the same time, China has made decisions to improve its framework and deepen its financial reforms to protect against the risks to the economy and further open up opportunities for foreign investment.
The government will drive off risks for the high-quality properties and reduce the payment of interest to the local governments.
The premier stated in an interview that China needs to deepen the reforms of the financial system. China has improved its efforts to handle the financial risks as the economy is growing by 3 percent since the last year. The economy has suffered for three years of the covid-induced aftereffects, a shortage in the property sector and a breakdown in private enterprises, and the weakening demand for Chinese exports.
edited and proofread by nikita sharma