Joe Biden signs order to ban US investments in China's tech sectors

US President Joe Biden has signed an executive order to ban some new US investments in China like computer chips, resulting in the requirement of government notification in other tech sectors. The long-awaited order has restricted the US investments in Chinese entities in three sectors — semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems.  

The administration said the restrictions would apply to "narrow subsets" of the three areas, without giving any specifics. The proposal is however, open for public input. 

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 measure targets private equity, venture capital, joint ventures and greenfield investments. 

Biden said in a letter to Congress that he was declaring a national emergency to deal with the threat of advancement by countries like China "in sensitive technologies and products critical to the military, intelligence, surveillance or cyber-enabled capabilities." 

China said on Thursday that it is "gravely concerned" about the order and that it reserves the right to take measures. 

The order affects normal operation and decision-making of enterprises, and undermines the international economic and trade order, a statement from the Chinese Commerce Ministry read. 

The Chinese foreign ministry said the country was "strongly dissatisfied" with and "resolutely opposes the U.S.'s insistence on introducing investment restrictions on China", having also lodged solemn representations with the U.S.