US president Joe Biden on Wednesday issued an executive order restricting stateside investors from sinking their funds into Chinese firms developing certain technologies, as part of an effort to prevent such products being used by China's military.
The White House reckons that"barriers between civilian and commercial sectors and military and defense industrial sectors" in these countries range from thin to non-existent, as tech developed in the private sector is funneled to military interests. Biden called investment a"cornerstone" of US economic policy and clarified that the the nation supports cross-border investment when it is not inconsistent with US national security interests.
The program will target transactions involving acquisition of equity interests ; greenfield investments; joint ventures; and certain debt financing transactions that are convertible to equity, said the Treasury Department.
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