The order covers advanced computer chips, micro electronics, quantum information technologies andSenior administration officials said the effort is related to national security goals rather than economic interests and the categories it covers are intentionally narrow in scope. The order seeks to blunt China’s ability to use U.S. investments in its technology companies to upgrade its military while also preserving broader levels of trade that are vital for both nations’ economies.
The United States and China are increasingly locked in a geopolitical competition with a conflicting set of values, including over Russia's invasion of. However, with its economic growth sliding to 0.8% for the three months ending in June, China appears far more willing to engage with Raimondo than with defense officials and diplomats, whom it has fully or partly rebuffed.