{"id":1996307,"date":"2023-08-10T07:30:01","date_gmt":"2023-08-10T11:30:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-bidens-china-tech-curbs-to-keep-investors-sidelined-fearing-more-steps\/"},"modified":"2023-08-10T07:33:18","modified_gmt":"2023-08-10T11:33:18","slug":"analysis-bidens-china-tech-curbs-to-keep-investors-sidelined-fearing-more-steps","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-bidens-china-tech-curbs-to-keep-investors-sidelined-fearing-more-steps\/","title":{"rendered":"Investors wary of further measures, stay away due to Biden&#8217;s China tech restrictions."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-bidens-china-tech-curbs-to-keep-investors-sidelined-fearing-more-steps%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1996307&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><strong>Investors on the Sidelines as Biden&#8217;s China Tech Curbs Raise Concerns<\/strong><\/p>\n<p>By Kane \u200bWu and Michael \u2062Martina<\/p>\n<p>HONG KONG\/WASHINGTON (Reuters) &#8211; President Joe\u200d Biden\u2019s move \u200cto prohibit some U.S. technology investments in China\u2063 is expected to keep investors on the sidelines,\u200b concerned\u2062 that tougher measures \u2063are ahead as tensions simmer between\u200d the world\u2019s two biggest\u2062 economies.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>U.S. private equity and venture\u200c capital investors have already hit\u200c the brakes on \u200dsensitive technologies in China as relations have worsened since\u2063 the administration of Biden\u2019s predecessor, \u200bDonald\u2063 Trump, over issues from tech to China\u2019s\u200b industrial policies \u2063to national\u200b security.<\/p>\n<p>Aiming to keep\u2064 U.S. capital and expertise from\u2063 helping\u200d China\u2019s \u2062military modernisation\u2063 and harming U.S. national security, Biden\u2019s executive order\u2062 on Wednesday was limited, for example \u2063by applying\u200d only to new investments. <\/p>\n<p>But it will\u2063 not be the\u2064 end of\u2064 measures to tighten\u2063 scrutiny\u200d of American investments in China, which is struggling to get\u2064 back on its\u200b feet since the COVID-19 pandemic, dealmakers and \u200danalysts say.<\/p>\n<p>The order authorises the Treasury secretary to \u200bprohibit or restrict \u200cU.S. investments in \u200bChinese firms in semiconductors and microelectronics, quantum information technologies and certain <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-sam-brownback-calls-on-woke-corporations-to-pull-advertising-dollars-out-of-beijing-winter-olympics\/\" title=\"Exclusive \u2014 Sam Brownback Calls on Woke Corporations to Pull Advertising Dollars Out of Beijing Winter Olympics\u00a0\">artificial intelligence systems<\/a>.<\/p>\n<p>Congress may introduce legislation expanding on Biden\u2019s restrictions, said Weiheng \u200cChen,\u2062 senior \u2063partner and head of Greater \u200dChina practice at law\u2063 firm Wilson Sonsini.<\/p>\n<p>Indeed, congressional\u200b Republicans immediately criticised the order by \u200dDemocrat Biden \u2062as not going far enough.<\/p>\n<p>\u201cCertain U.S. investors may\u200b just choose to wait for the implementation\u200d rules before <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/desantis-to-take-action-against-esg\/\" title=\"DeSantis to Take Action Against ESG\">making investment decisions<\/a> in these covered sectors,\u201d Chen said.<\/p>\n<p><strong>Shift to Yuan<\/strong><\/p>\n<p>Acquisitions of\u2064 Chinese companies by U.S. firms have sunk almost\u2062 60% so far this year to $3.5 billion from $8.8 billion for the same period last year, according to Dealogic data, while \u200bdeal value in the tech sector has plunged to $815 from $6.1 \u2064billion.<\/p>\n<p>China-U.S. tensions and Beijing\u2019s regulatory crackdown \u200bon\u2062 its private enterprises have prompted many fund\u200b managers to pivot from the country or shift to local-currency investments.<\/p>\n<p>\u201cThe situation is already \u2064very \u2062bad for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-bidens-china-tech-curbs-to-keep-investors-sidelined-fearing-more-steps\/\" title=\"Investors wary of further measures, stay away due to Biden's China tech restrictions.\">dollar-based funds<\/a>\u2063 to invest in China\u2019s tech sector. There isn\u2019t much room for things to get worse,\u201d said Beijing-based China Growth \u200dCapital partner Wayne Shiong.<\/p>\n<p>Biden\u2019s move will likely make\u200d China-focussed venture capital firms feel more urgency \u2062to raise\u2062 yuan \u2063funds from \u200bChinese\u200d investors, he\u2064 said.<\/p>\n<p>The executive order and the prospects of \u200da pause in\u200d private\u2063 equity\u2062 investments in China across the board come as Beijing seeks\u2063 to attract capital to\u200d revive\u200c its slowing economy. <\/p>\n<p>Pan\u2062 Yuan, a researcher \u2062at the Chinese \u2062Academy of Social Sciences, a \u200btop government think tank, said\u2063 despite Biden\u2019s restrictions,\u2064 China will maintain an open policy to attract foreign \u2063capital.<\/p>\n<p>To counter\u2063 the\u2064 U.S. curbs, China must focus on improving its domestic technology \u2063capabilities, Pan said.<\/p>\n<p><strong>Tech Disputes<\/strong><\/p>\n<p>China hawks in Washington blame American\u2063 investors for transferring capital and valuable know-how to Chinese technology companies that could help advance Beijing\u2019s military capabilities. Beijing,\u200d for its part, has been seeking self-sufficiency in\u2063 the escalating tech disputes.<\/p>\n<p>On Monday, Hua Hong Semiconductor, China\u2019s number two chip foundry, made its Shanghai\u200d market debut, \u2062raising $3 billion and \u2064joining a long queue\u2063 of \u200dlocal chipmakers to tap \u2062the stock \u2062market to fund expansion.<\/p>\n<p>In response to Biden\u2019s executive order, China\u2019s commerce ministry said it was \u201cgravely concerned\u201d and \u2064reserved the right to take countermeasures.<\/p>\n<p>Analysts said,\u200c however, Beijing\u2019s \u2063retaliation options are limited and would unlikely escalate the matter, especially given tight scrutiny since \u200bthe Trump era.<\/p>\n<p>\u201cThe main Chinese reaction will be to discourage other countries from\u200c copying American actions,\u201d \u2062said Derek \u2063Scissors, \u200csenior fellow and\u2062 expert on\u2064 U.S.-China economic relations at the pro-business American Enterprise Institute.<\/p>\n<p>\u201cChina could\u2063 act in\u2062 non-reciprocal fashion, retaliating somewhere other than on\u00a0the investment side. But the executive order is barely \u2063going to do \u2062anything, and China escalating\u200d would risk turning a molehill into a \u200bmountain.\u201d<\/p>\n<p>  (Reporting\u200d by\u200d Kane Wu\u200b in Hong Kong and Michael Martina in Washington; Additional \u2063reporting by\u2062 Roxanne Liu and Ziyi Tang in Beijing, Yantoultra Ngui in Singapore and Vineet Sachdev\u200c in \u2064Bengaluru; Editing by Sumeet Chatterjee and William Mallard)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/analysis-bidens-china-tech-curbs\/attachment\/file-photo-illustration-picture-of-chinese-and-u-s-flags-with-3\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/analysis-bidens-china-tech-curbs\/attachment\/file-photo-illustration-picture-of-chinese-and-u-s-flags-with-4\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/analysis-bidens-china-tech-curbs\/attachment\/file-photo-an-ai-artificial-intelligence-sign-is-seen-at-2\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Landon\u2062 Starbuck<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Joe Allen<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>with Dr. Jeff\u2063 Barke<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Jack Smith slides into Trump\u2019s DMs while James \u200dComer shows foreign sources for Biden family income.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>BENGALURU (Reuters) \u2063\u2013 South Korea\u2019s\u2063 Hyundai Motor Group said on Tuesday it plans to \u200dlaunch more electric vehicles under the Hyundai and\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>BERLIN (Reuters)\u2062 \u2013 German technology group \u200bRobert\u2063 Bosch said on Tuesday that it will\u2062 establish a joint venture with TSMC, Infineon and\u2026\u200d <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>TAIPEI (Reuters) \u2013 Taiwan Semiconductor Manufacturing \u200cCo\u2064 (TSMC) said on Tuesday that its board \u2062had approved a 3.5 billion euro ($3.8\u200c billion)\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Gwladys Fouche OSLO (Reuters) \u200c\u2013 Meta Platforms \u200bis asking a court in Norway to stop a fine the Nordic country\u2019s data\u2026\u200b <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>a pause in their investments in China due to President Biden&#8217;s ban on certain technology investments. This move has raised concerns among investors, who fear that more stringent measures may be implemented in the future as tensions between the US and China continue to escalate.<\/p>\n","protected":false},"author":66,"featured_media":1996308,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1996307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1996307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1996307"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1996307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1996308"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1996307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1996307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1996307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}