US-China Tensions Gain Momentum As US Weighs Overseas Investment Screening

  • The U.S. weighed an executive order to screen and possibly restrict U.S. overseas investment in cutting-edge technology development in China and other potentially hostile countries, the Wall Street Journal reports.
  • The initiative follows a failed attempt to pass legislation with similar restrictions.
  • However, the move drew concern from some U.S. tech businesses and investors by proving unwieldy or overbroad and undercut U.S. economic influence.
  • Also Read: Alibaba, Other Chinese Stocks Brace For Uncertainty As US Looks To Monitor, Restrict Investment In China
  • The move stemmed from growing concern regarding U.S. investment in China, financing Beijing's goal to dominate semiconductors, artificial intelligence, and quantum computing sectors.
  • The U.S. and China have been at loggerheads since the pandemic vandalized the semiconductor supply chain, and China gained dominance over cutting-edge tech.
  • Recently, the U.S. threatened Apple Inc AAPL with consequences for procuring chips from controversial Chinese chipmaker Yangtze Memory Technologies Co for its iPhone 14
  • The U.S. Chips Act imposed restrictions on investment in China.
  • The U.S. also imposed restrictions on China's access to cutting-edge tech, which extended to China's chipmakers.
  • The U.S. also slapped restrictions on Nvidia Inc's NVDA transfer of tech to China.
  • Photo by mohamed hassan via Pxhere
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