The US President’s executive order prohibiting investments in delicate high-tech sectors was denounced by China’s Foreign Ministry as the latest action to reduce global interdependence.
China’s Foreign Ministry criticized US President Joe Biden’s executive order prohibiting investments in sensitive high-tech sectors and dubbed the new action “anti-globalization.”
During a media briefing, Mao Ning, spokesperson for the Foreign Ministry, stated that the United States has distorted the definition of national security.
In a press conference Mao said that the act of limiting American corporations’ investments in China by using national security as an excuse indicates an exaggerated interpretation of security and the conversion of business involvement into a political matter regarding global interdependence.
Mao further mentioned that the main intention is to strip China of its rightful progress, labeling this action as clear-cut economic pressure, reducing global interdependence and technological intimidation, an act that contradicts the principles of a free market system and fair competition.
This ‘movement for reducing global interdependence’ say that private equity, venture capital, and joint venture firms are forbidden by the executive order of the United States to invest in Chinese entities that participate in the development of advanced semiconductors, quantum information technologies, and AI systems.
The US program, which is called to be a movement for reducing ‘global interdependence’, specifically funds the development of vital foreign technology with hazards to national security, protecting US capital.
According to Financial Times , that Tencent, Alibaba, Baidu, and ByteDance proceeded to stockpile supply by placing orders with Nvidia worth $5 billion for GPUs to power AI systems since Chinese corporations had already anticipated the harsher US export regulations.
While the official justification for the new US measures is to restrict access to cash and technology by China’s military, Richard Windsor, the publisher of the business blog Radio Free Mobile, wrote that this appears to be a very feeble justification for a far broader attack on China’s growth as a world power and as a big contributor to global interdependence.
Beijing said, a clear example of expanding the definition of security and politicizing economic activity is the restriction of US corporations’ investments in China under the guise of national security.
This seems to be a strategic move to lessen the global interdependence and to alter the global market.
The Beijing ministry further said that this is flagrant economic coercion and technological bullying, which seriously violates the principles of a market economy and fair competition, undercuts the international economic and trading order, disrupts global supply chains, and jeopardizes the interests of both China and the US as well as the global interdependence.
We all know that the United States and China are two big contributors to global interdependence, however, these two big men might be arguing over such matter.
Recalling Biden’s earlier promise to refrain from trying to “decouple” from China or obstruct its economic growth, Beijing said that they implore the US to keep its word, refrain from politicizing and weaponizing trade and technology-related issues, reverse any unwise actions, lift investment restrictions on China, and foster commercial cooperation between the US and China.
May the difference of opinions between these two countries be fixed to maintain good global interdependence.