BEIJING (AP) — After President Joe Biden escalated a dispute over technology and security by tightening controls on U.S. investments that might aid Beijing in developing its military, China accused Washington on Thursday of preventing technological advancement of China.
“US preventing technological advancement of China” as China tries to claim. (Photo: The Star)
The Foreign Ministry warned that the latest restrictions in a growing dispute over Beijing’s industrial development would harm global supply chains and accused the Biden administration of pursuing “technology hegemony” in a call for Washington to “immediately revoke its erroneous decision.”
Advanced computer chips, microelectronics, quantum information technologies, and artificial intelligence are all the focus of a directive that Biden signed on Wednesday. According to the order, it wants to restrict American investment in sectors that might aid in the growth of the Communist Party’s military wing, which is currently in power.
The order increases security-related limitations on Chinese access to American processor chips used in smartphones, artificial intelligence, and other technology. The American financial markets are closed to dozens of Chinese companies that Washington claims are involved in military modernization. This has been one of the basis why US was accused of preventing technological advancement of China.
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Washington’s “true purpose is to deprive China of its development rights and maintain its own hegemony,” the Foreign Ministry claimed.
The Ministry of Commerce said in a separate statement that China will “resolutely safeguard its own rights and interests,” but it made no mention of potential retaliation. Beijing has made similar statements after prior U.S. trade restrictions, but typically takes no action.
On Thursday, Biden brought up the subject at a fundraiser for his reelection campaign in Utah, saying that “we have China to deal with” and describing it as “a ticking time bomb in many cases” while also making it clear that he wasn’t looking for a fight.
They do bad things when they have problems, according to Biden, so it’s not good that they have problems.
Because of disagreements over security, human rights, technology, Taiwan, and Beijing’s treatment of Hong Kong, U.S.-Chinese relations are at their lowest point in decades. The Biden administration has enacted sanctions in an effort to improve those relations.
When Janet Yellen, the Treasury Secretary, visited Beijing in July, she promised to improve communication but said there had been no resolution to any disputes. Chinese leaders have called on the US to alter its stances on Taiwan and other matters, but they have made no indications that they might alter their own trade or other policies that annoy the US and China’s Asian neighbors.
According to American officials, the new restrictions were created to complement export controls on cutting-edge computer chips rather than disrupt China’s economy.
Investors from the United States would have to inform the government of specific China-related transactions. Some would be against the law.
According to officials, the order focuses on industries like private equity, venture capital, and joint ventures where investments may be made that could potentially give countries like China access to new information and military capabilities.
A requirement to monitor and restrict investments in nations of concern, including China, was approved by the Senate in July.
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