Trade with China….Tech or Other commerical products HAS been a ongoing problem for America…
President Joe Biden on Wednesday issued an executive order banning U.S. investments flowing into China’s technology sectors, including semiconductors and microelectronics, quantum computing and artificial intelligence.
The order would prohibit private equity and venture capital investments flowing into sectors that Biden said help Beijing gain a military advantage by developing “new applications that pose significant national security risks, such as the development of more sophisticated weapons systems, breaking of cryptographic codes, and other applications that could provide these countries with military advantages.”
In addition to capital flows, Chinese companies getting U.S. investments benefit from other intangible gains such as managerial know-how, market access and links to broader financial networks, the order said. The ban applies to China and its special administrative regions of Hong Kong and Macao.
Declaring a national emergency to address the threat, Biden directed the Treasury secretary, in consultation with the Commerce Department and other departments and agencies, to formulate rules requiring private equity and venture capital firms to notify the U.S. government of outbound investments. The rules would also specify the types of investments and technology areas that are prohibited.
The order noted that China eliminates “barriers between civilian and commercial sectors and military and defense industrial sectors, not just through research and development, but also by acquiring and diverting the world’s cutting-edge technologies, for the purposes of achieving military dominance.”…
Remember when Donald Trump tried his foreign trade policy idea’s against China….
And coaxing China to buy American….
It didn’t work….
Joe Biden is now looking pull American enterprise away from it’s reliance on China tech…
What makes this were the President wants to go is because time after time?
His national Security people tells him that China is peeking into American usage of China products…..
The world’s eyes have been glued to an epic competition that has been unfolding in Beijing between the globe’s leading contenders. The contest is fierce, and it’s anyone’s guess who will emerge the victor. No, we’re not talking about the Winter Olympics. We’re talking about the ongoing trade war between the United States and China.
The trade war is now almost four years old. In 2018, President Trump fired the first shots by imposing tariffs on various Chinese products. China retaliated, imposing tariffs on American products. The war kept escalating — with each side making their tariffs higher and more expansive.
Then, in January 2020, President Trump met with Chinese Vice Premier Liu He at the White House, and they both signed the “Phase One” trade deal. Think of it basically as a trade armistice. It prevented the war from escalating further, and it offered a roadmap for the two global powers to potentially become trade buddies again…
“The strangest part,” Bown says, was a provision that instructed China to buy an extra $200 billion of American-made stuff. That is, not only did China have to return to buying the amount of stuff it had bought before the trade war, it had to go above and beyond that. $200 billion above and beyond that. And it had to do so in two years; by the end of 2021. “We had never seen a trade agreement like that before,” Bown says.
Now that it’s 2022 — and China’s deadline to buy boatloads of American-made stuff has passed — Bown recently crunched the numbers to see how much China ended up actually buying. “In the end,” Bown says, “China actually bought none of the additional $200 billion of exports that it promised in the agreement.”
But it’s actually worse than that. While China did ramp up its purchases of U.S. agricultural products, when it comes to buying U.S. products and services overall, it still hasn’t even returned to buying the amount of stuff it had bought from America before the trade war began….