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The White House wants to ban US companies and mutual funds from investing in Chinese tech companies. We should not yet expect such measures from Brussels. The technology
The White House wants to ban US companies and mutual funds from investing in Chinese tech companies. We should not yet expect such measures from Brussels.
The technology war between the US and China is intensifying again. President Joe Biden last night signed an executive order banning investment in China’s tech sector by law. A decision that is celebrated in Beijing as an escalation and the Chinese Ministry of Economic Affairs announced that “countermeasures” were imminent.
Biden’s decision puts the European Union in a difficult position, the Financial Times knows. Normally, Europe follows most of the actions of its most powerful ally, but this time the European Union seems less interested. According to the Union, it is examining the options and will present a corresponding strategy for investments in China by the end of this year.
The European Union and its member states are trying to find a delicate happy medium. The situation in Europe is much grayer than in Washington. On the one hand, the Union does not want to offend the USA, but many European countries also do not want to completely break up their trade relations with China.
France and Germany in particular, countries that have a say in Brussels, called for a cautious approach in order not to destabilize the European economy. Germany even wants to take an “active role” in the development of the European strategy. Restrictive measures should only target products or companies that pose an undeniable “security risk,” it said.
There is no sign of caution in Washington. The US government is doing its best to damage the Chinese economy and tech sector as much as possible. There’s a lot of debate going on about whether AI chip exports shouldn’t be banned altogether, and the public cloud sees Washington as a boxing ring in which to punch your rival in the face.
There are also occasional countermeasures from China against American companies. Companies that are involuntarily in the middle of conflict see everything with sadness.
Source: IT Daily
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