[Asia Economy New York=Special Correspondent Joselgina] The Biden administration in the United States is expected to limit controls on overseas investments by U.S. companies targeting China to certain industries such as quantum computers and semiconductors.
On the 12th (local time), Axios reported that the Biden administration is focusing on controlling U.S. companies' investments in Chinese quantum computer, artificial intelligence (AI), and semiconductor companies, and that biotechnology or battery technology are unlikely to be included in the control targets.
The Biden administration is currently drafting an executive order with these contents. The executive order was originally scheduled to be announced last year, but the media reported that it may take several more months for consultations with allied countries. Accordingly, there is little expectation that the Biden administration will announce the executive order ahead of Secretary of State Tony Blinken's visit to China scheduled for February.
Earlier, Treasury Secretary Janet Yellen requested time to consult with partners and allies regarding the potential impact of the executive order. The Treasury Department oversees the Committee on Foreign Investment in the United States (CFIUS), which approves foreign investments in the U.S. and manages the sanctions list of transactions that U.S. companies are prohibited from engaging in, thus playing a key role in implementing the new executive order.
Another foreign media outlet reported that Treasury officials have been meeting with think tanks and financial firms to gather opinions on the executive order, and that measures to restrict investments not only in companies headquartered in China but also in companies founded by Chinese nationals have been discussed.
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