U.S. President Joe Biden Signs Executive Order to Regulate and Restrain High-Tech Investments in China: A Closer Look
The recent executive order signed by U.S. President Joe Biden to regulate and restrain investments in high technology in China is reflective of the intensifying competition between the world's two largest powers. The White House has specified certain areas targeted by this move, which also underscores the growing rivalry.
Let's zoom in on the executive order. It encompasses all advanced computer chips, microelectronics, quantum information technologies, and artificial intelligence. Moreover, the U.S. asserts that this is more about security than economics, aiming to avoid a negative reputation in this regard. Believe me, this is far more than just a simple competition sanction.
Now, when I mention official data, I'm confident you'll say, 'You're right.' Let's take a look at official statements from the U.S. Department of Commerce. According to these figures, the global trade in goods between the world's two largest economies amounted to $690.6 billion in 2022, with the U.S. importing goods worth $536.7 billion from China alone. Yes, this is just for one year. In other words, this amount, which could address economic problems in many countries, might be erased from China's balance sheet due to U.S. sanctions.
Although China may not express its concerns in an official tone, nearly every official statement emphasizes an expectation of problems. In fact, China has even developed reciprocity towards the U.S.'s actions. A trade policy advisor to the Chinese government stated that what is being done to them is an economic assault attempt, and China could make it harder for the U.S. by increasing controls on metals used in semiconductor production. This statement, I believe, is quite mild; the man literally threatened the U.S. because the U.S.'s actions were nothing short of a serious harbinger of disaster for China. Adding India to the equation, it was essentially saying to China, 'tough times ahead for you.' Even Apple's decision to largely shift the production of iPhone phones to India and produce all parts, especially for the new model, there has caused China a headache.