U.S President Joe Biden on Wednesday gave a nod(signed) to an executive order which will prohibit U.S from investing in China’s sensitive technologies.
The order will prevent the investments in three fields: microelectronics and semiconductors, quantum information technology and certain artificial intelligence systems. It will also restrict venture capital and private equity industries from providing cash into Chinese firms which will help strengthen Beijing’s military capabilities that may undermine U.S national security.
This action may weaken the relationship between the two emerging superpowers and hence can affect the economy of the rest of the world.
