The Biden administration has set out its latest plans to curb the modernisation of China’s military with a new regulation restricting US investment in Chinese cutting-edge technology. The Treasury on Friday released proposals for a new rule designed to implement an executive order that President Joe Biden signed last year.
It also includes possible exceptions, including for investments in publicly traded securities or funds. The new rule would affect everything from equity investments to debt financing that is convertible to equity. It would also apply to greenfield investments and joint ventures. But it would exempt investments by limited partners — endowments and pension funds that seed venture capital and private equity groups — below a certain threshold.