Global: EU to Review US Restrictions on Tech Investments in China

The European Commission of the EU has revealed its intention to evaluate the recent U.S. ban on new American investments in China, particularly in sensitive technological sectors like computer chips. This announcement was made by EU executives on Thursday, underscoring their ongoing collaboration with the U.S. administration.

President Joe Biden issued an executive order on Wednesday that effectively restricts or prohibits U.S. investments in Chinese entities operating in three key sectors. These sectors encompass semiconductors and microelectronics, quantum information technologies, and specific artificial intelligence systems.

In response, a Commission spokesperson stated, “We take note of the Executive Order on outbound investment released by the U.S. on 9 August. We will be analysing the Executive Order closely.” The Commission also emphasized their active communication with the U.S. administration and their commitment to continued cooperation on this matter.

The German economy ministry also acknowledged the Commission’s initiative to assess the U.S. ban. A spokesperson from the ministry commented, “We will be actively involved in this process.” Germany, still grappling with the ramifications of strained economic ties with Russia, has adopted a risk-mitigation strategy concerning China and has initiated discussions about measures to address potentially hazardous foreign investments.