Biden restricts US investments in Chinese tech

US President Joe Biden signed an executive order on Wednesday to block and regulate US investment in key high-tech industries in China.

The order covers semiconductors, quantum information technologies and artificial intelligence.

Biden said in a letter to Congress he was declaring a national emergency to respond to China's advancements "in sensitive technologies and products critical to the military, intelligence, surveillance, or cyber-enabled capabilities."

Senior administration officials said the order was intentionally narrow in scope and stemmed from national security goals rather than economic interests.

However, it comes amid an intensifying tech rivalry between the world's two biggest powers, as well as Biden's efforts to revive high-tech manufacturing at home.

The order is expected to come into effect next year.

China 'disappointed' by restrictions

Senate Democratic Leader Chuck Schumer praised Biden's order, "For too long, American money has helped fuel the Chinese military's rise."

"Today the United States is taking a strategic first step to ensure American investment does not go to fund Chinese military advancement," he said.

Republicans said the Biden order did not go far enough. Senator Marco Rubio, for example, said the order was "almost laughable" because it ignored the dual-use nature of some technologies.

Meanwhile, a spokesperson for the Chinese Embassy in Washington said on Wednesday said it is "very disappointed" by the news.

In a statement, Liu Pengyu said the restrictions would "seriously undermine the interests of Chinese and American companies and investors."

"China will closely follow the situation and firmly safeguard our rights and interests," he added.