US investment groups are urging the Biden administration to refine proposed limits on investment in China, with venture capitalists eager for changes to a White House executive order that they argue puts them at a disadvantage.
President Joe Biden in August signed an order restricting US investment in China’s quantum computing, advanced chips and artificial intelligence sectors in an effort to cut the flow of US capital and expertise to the Chinese military. It banned some investment and imposed government notification requirements on other areas.
In recent weeks American banks, manufacturers and industry groups have registered some concerns with the Treasury, which has the role of writing the rules that will implement Biden’s executive order. They have warned of uncertainty from how the restrictions have been laid out and the potential harm to domestic innovation, while lobbying to narrow some provisions or expand carve-outs for some types of investments.