China accuses the US of “technological bullying” for restrictions on investment in strategic sectors

China is “deeply dissatisfied” and “firmly” opposes the new restrictions announced by the president of the United States, Joe Biden, to limit his country’s investments in strategic technological areas in the Asian country. The Chinese Foreign Ministry has issued a statement on Thursday in which it describes Washington’s measures as “examples of economic coercion and technological harassment.” And he warns that the Asian giant will “firmly protect their rights and interests.” The Ministry of Commerce has also joined the criticism against this “politicized action” that seeks to “decouple and cut off supply chains under the pretext of national security.”

“The United States is going against the defense of the market economy and the principle of fair competition, it is hindering the usual business practices of companies, destroying international trade orders and seriously disrupting the security of supply chains. World Cups”, declared a spokesman for the Ministry of Commerce, who announced that “China reserves the right to take measures in relation to the situation”.

Amid a growing rivalry between the two main economic, technological and military powers of the 21st century, the White House has in recent months imposed a series of restrictions on China’s access to critical technology and tools for the manufacture of semiconductors, and has halted subsidies for US high-tech firms producing advanced chips on Chinese soil.

But the executive order signed by Biden on Wednesday goes a step further, as it will prohibit US venture capital companies from investing in three key sectors for the Chinese economy: semiconductors, quantum computing and artificial intelligence. It is one of the most significant actions Washington has taken to restrict US investment in China, and comes after months of talks with G-7 members, who have been urged by the United States to take similar steps.

Although the United States insists that the measure will only affect these specific sectors “due to the role they could play in the development of China’s military, intelligence, surveillance and cybernetic capabilities”, in the eyes of Beijing, Washington has not complied with his word that he “does not seek decoupling” (the reduction of exchange, mainly commercial, between both nations) and as the US Secretary of State, Antony Blinken, and the Secretary of the Treasury insisted on their recent visits to the Chinese capital , Janet Yellen.

self sufficiency

According to Beijing, the “true purpose of Washington is to deprive China of its right to develop and thus maintain its own hegemony.” “It is about pure economic coercion and technological harassment,” Foreign Affairs criticized in its statement this Thursday, in which it urged that the measures be withdrawn “immediately.” Technological self-sufficiency is one of the most pressing challenges facing the country. In recent months, the Communist Party has tightened its grip on the technology sector and limited Western access to certain materials and technologies for key industries.

Alfredo Montufar-Helu, director of the Chinese Center for the Economy and Business, told the Hong Kong daily South China Morning Post that the new US restrictions could “extend to areas that are theoretically not sensitive, such as autonomous driving, synthetic biology and weather”. “Limiting certain technologies now could hurt the innovation potential of some commercial products over the next decade,” he added.

In 2022, the value of foreign direct investment from the United States in China was 8,000 million dollars (7,200 million euros), the lowest since 2005, according to the Rhodium Group, while that of US venture capital investments in the Asian country it was 1,000 million dollars (906 million euros), compared to a maximum of 19,000 million dollars (17,200 million euros) registered in 2018.

Biden’s decision could derail the possible trip to China by US Commerce Secretary Gina Raimondo, who had expressed interest in visiting the Asian country at “late summer.” During this summer season there has been a diplomatic landing from Washington with the mission of finding areas for cooperation and redirecting the bilateral relationship, which is, according to Beijing, “in a critical state”.

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