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Skip to content Skip to content Bloomberg the Company & Its ProductsThe Company & its ProductsBloomberg Terminal Demo RequestBloomberg Anywhere Remote LoginBloomberg Anywhere LoginBloomberg Customer SupportCustomer Support Think Bigger:See how we drive impact, create opportunities and power decisions US Edition * UK * Europe * US * Asia * Middle East * Africa * 日本 Sign In Subscribe * Live Now BLOOMBERG TV+ BLOOMBERG DAYBREAK AUSTRALIA Bloomberg Daybreak Australia. Live from New York and Sydney. The latest news impacting markets, business and finance around the world. BLOOMBERG RADIO BLOOMBERG DAYBREAK ASIA Live market coverage co-anchored from Hong Kong and New York. Overnight on Wall Street is daytime in Asia. Markets never sleep, and neither does Bloomberg. Track your investments 24 hours a day, around the clock from around the world. Listen -------------------------------------------------------------------------------- BLOOMBERG ORIGINALS BUSINESS OF SPORTS If the only thing you know about sports is who wins and who loses, you are missing the highest stakes action of all. The business owners that power this multibillion dollar industry are changing, and a new era of the business of sports is underway. From media and technology to finance and real estate, leagues and teams across the globe have matured into far more than just back page entertainment. And the decisions they make have huge consequences, not just for the bottom line, but for communities, cities, even entire countries. 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Play Video Play Unmute Current Time 0:00 / Duration 0:00 Loaded: 0% 0:00 Progress: 0% Stream Type LIVE Remaining Time -0:00 Playback Rate * 2x * 1.75x * 1.5x * 1.25x * 1x, selected * 0.75x * 0.5x 1x Chapters * Chapters Captions * captions settings, opens captions settings dialog * captions off, selected ShareFullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaque Font Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall Caps Reset restore all settings to the default valuesDone Close Modal Dialog End of dialog window. Biden to Unveil China Investment Curbs Before G7 Summit Biden to Unveil China Investment Curbs Before G7 Summit Close Share -------------------------------------------------------------------------------- Embed Permalink Unmute WATCH: President Joe Biden aims to sign an executive order that will limit key investments by American businesses in parts of China’s economy. Source: Bloomberg By Jenny Leonard +Follow April 20, 2023 at 3:48 PM GMTUpdated onApril 21, 2023 at 7:56 AM GMT LISTEN TO THIS ARTICLE 4:52 SHARE THIS ARTICLE Copied Gift Gift this article Exit Subscriber Benefit Bloomberg subscribers can gift up to 5 articles a month for anyone to read, even non-subscribers! Learn more Subscribe Sign In Follow the authors @jendeben + Get alerts forJenny Leonard President Joe Biden aims to sign an executive order in the coming weeks that will limit investment in key parts of China’s economy by American businesses, people familiar with the internal deliberations said. The administration, which has been debating the measure for almost two years, plans to take action around the time of a summit of the Group of Seven advanced economies that’s due to start on May 19 in Japan. The US has been briefing its G-7 partners on the investment curbs for high-tech industries, and hopes to get an endorsement at next month’s meeting, even though the other countries aren’t expected to announce similar restrictions at the same time, the people said. The likeliest sequence is for the executive order to be signed soon after that expression of international support, one of the people said. WATCH: Treasury Secretary Janet Yellen says “national security is of paramount importance” to the Biden administration in US relations with China. Source: Bloomberg The move marks a new phase in the years-long economic campaign against China that’s already seen the US impose tariffs on Chinese imports under ex-President Donald Trump, and more recently seek to restrict exports of key American technologies. Now, capital flows between the world’s two biggest economies are in the crosshairs. Read More: PE Firms Feel Chill on China Investing as Biden Crackdown Nears On Friday, China accused the US of politicizing tech issues. Foreign Ministry spokesman Wang Wenbin said Washington’s “real goal is to deprive China of its development rights. It is pure economic coercion.” The Asian nation would protect its rights and interests, he said at a regular press briefing in Beijing, without going into detail on how that would happen. Investors largely shrugged off concerns of more restrictions, saying they would do little to impact actual business because US investments in some of China’s high-tech sectors have already been receding. China’s chip stocks slid Friday as investors took profit while assessing the impact of rising geopolitical tensions with the US. “The US has been working towards this for awhile and US investments in sensitive areas has already been declining,” said Marvin Chen, an analyst at Bloomberg Intelligence. “Nonetheless, China tech will become more reliant on domestic capital pool and state support as foreign investment continues to withdraw.” AI, QUANTUM COMPUTING The US says it’s imposing the curbs on national security grounds – a point emphasized by Treasury Secretary Janet Yellen in a speech Thursday – rather than in an effort to hold back the development of a rival superpower, as Beijing has argued. Tensions have escalated since Russia’s invasion of Ukraine, a conflict in which the US and China effectively find themselves on opposite sides, and there’s growing concern about a new Cold War that could fracture the world economy into rival blocs. The executive order will cover the fields of semiconductors, artificial intelligence and quantum computing – focusing on investments where US firms play an active role in management. That includes venture capital and private equity, as well as certain forms of technology transfer and joint ventures. Officials involved in drafting the order say it targets potential new investments, not existing ones. Some types of investment will be barred outright, while others will require companies to notify the government. Details are set to be outlined in a set of regulations to follow the executive order, and companies will have some time to offer feedback before the order goes into effect. US officials say the investment limits are intended to choke off critical funding and know-how that could advance China’s military capabilities. In a speech delivered in Washington Thursday that addressed US-China economic ties, Yellen said the curbs on outbound investment will affect “specific sensitive technologies with significant national security implications.” COMPETITIVE ADVANTAGE “These national security actions are not designed for us to gain a competitive economic advantage, or stifle China’s economic and technological modernization,” Yellen said. The US will pursue its security concerns regarding China “even when they force trade-offs with our economic interests,” and will “engage and coordinate with our allies and partners” over the policies, she said. Read More: Yellen Says China Security Worries Eclipse Economy Interests US officials have made clear that a unilateral measure wouldn’t fulfill the national security goals because investments in China by other countries could just take the place of the American ones that the administration is about to block. Treasury Department officials this week briefed their European counterparts on the measure, and the administration has begun sharing information with business leaders too. Once the order takes effect, Treasury will be administering a one-year pilot program that could later be expanded. A spokesman for the National Security Council declined to comment. As China’s economy took off in the past three decades, American companies plowed money in as they sought to capture a slice of the world’s fastest-growing major market and lower the cost of production for supply chains. US DIRECT INVESTMENT IN CHINESE MANUFACTURING Cumulative investment by industry through end of 2021 Source: Bureau of Economic Analysis Cumulative total investment there by US business was worth almost $120 billion at the end of 2021, with about half of that going into manufacturing, according to the Bureau of Economic Analysis. But the growing consensus in Washington in favor of curbs on China, along with Beijing’s turn to more interventionist policies, may already have dented the enthusiasm of many firms. Last year, the share of deals by US private equity investors that involved buying stakes in Chinese companies shrank to about one-quarter of what it was a decade earlier, PitchBook data show. — With assistance by Alberto Nardelli, John Cheng, Catherine Ngai, Colum Murphy and Philip Glamann (Updates with comments from China’s Foreign Ministry.) SHARE THIS ARTICLE Copied Gift Gift this article Exit Subscriber Benefit Bloomberg subscribers can gift up to 5 articles a month for anyone to read, even non-subscribers! Learn more Subscribe Sign In Follow the authors @jendeben + Get alerts forJenny Leonard Have a confidential tip for our reporters? 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Copy Link MORE FROM BLOOMBERG Biden Says US Chip Subsidies Not ‘Designed to Hurt China’ US Wants to ‘De-Risk,’ Not Decouple, From China, Biden Aide Says 2 hours ago Biden Hosts Yoon to Seek Unity Over Risks Beyond North Korea Biden Eyes a Reelection Announcement as Soon as Next Week TOP READS TikTok’s Algorithm Keeps Pushing Suicide to Vulnerable Kids by Olivia Carville Red States to Reap the Biggest Rewards From Biden’s Climate Package by Saijel Kishan, Brian Eckhouse and Christopher Cannon Chinese Property Firms' Turnaround Plans Disappoint, Adding Stress to a $730 Billion Market by Ailing Tan, Andrew Monahan, Adrian Leung, Dorothy Ma and Shen Hong The Cameras Social Media Influencers Use by Ilena Peng Terms of Service Manage Cookies Trademarks Privacy Policy ©2023 Bloomberg L.P. All Rights Reserved Careers Made in NYC Advertise Ad Choices Help Register to read more.Get Startedcontinue Chevron Down Create an account and unlock 1 bonus article. 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