By Greg Gao
(JW Insights) Aug 31 -- US investment restrictions on key technology sectors in China will not only undermine the opportunities for fair competition but also disrupt the current industry chains highly reliant on global cooperation and collaboration, said China Council for the Promotion of International Trade (CCPIT) on August 30.
CCPIT held its regular press conference on August 30, during which a reporter asked, “Recently, US President Biden signed an executive order restricting US entities from investing in China in areas such as artificial intelligence, quantum computing, and semiconductor industries. What is the CCPIT’s comment on this?”
CCPIT spokesperson Sun Xiao responded that the recent executive order, numbered 14105, signed by the US President explicitly prohibits US entities from investing in China’s high technology sectors. The US investment ban and review mechanism deliberately misconstrue normal cross-border financing and business activities of Chinese enterprises, unfairly prohibiting and scrutinizing international investments flowing into China under the pretext of national security.
Such actions are intervention in the market through governmental power, disrupting competition, and suppressing the development of industries in other countries. These actions are inconsistent with the principles of non-discrimination, fairness, and free trade upheld by the World Trade Organization, and will undermine the global division of labor, international economic order, Sun added.
He emphasized that a free and fair international economic order, along with stable global division of labor and cooperation, are shared aspirations and interests of the global business community. CCPIT and China Chamber of International Commerce call upon the US to respect the principles of market economy and fair competition, and to take practical actions to uphold the security and stability of global industry chains.
