US curbs investments in China's tech sector

Move to restrict China's ability to develop military and surveillance tech

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President Joe Biden imposed limits on US investments in China as part of a push to restrict the country's ability to develop next-generation military and surveillance technologies that might threaten US national security.

The order, announced on Wednesday, would regulate US investments in some Chinese semiconductor, quantum computing and artificial intelligence firms.

It was signed after almost two years of deliberations that saw China hawks argue for faster, tougher action while others, including the Treasury Department, sought narrower measures that would take longer to go into effect.

While details of the rules still need to be worked out, the language of the order suggested that Treasury and those advocating a more cautious approach won out.

The order, which won't go into effect until next year, won't be retroactive and excludes sectors such as biotechnology. It may end up exempting passive investments as well as those in publicly traded securities, index funds and others assets.