Pak Sahafat – Following the issuance of a decree by the “Joe Biden” government banning investment in some sensitive technologies, American companies warned of the consequences of this decision and the retaliatory action of the Beijing government.
According to Pak Sahafat News Agency’s report, quoted by Reuters news agency, this week, the President of the United States issued an order aimed at protecting national security and preventing American capital and expertise from helping China’s military modernization, and banned new investments in China, especially in sensitive technologies, including computer chips.
The first reaction of the American investment companies to the issuance of this order was to express their dissatisfaction, and many believed that this order does not impose restrictions on the investment of Chinese technologies as much as it seems. But soon after, several investment companies said that the main concern in this regard depends on China’s reaction.
Rick Meckler, one of the shareholders of the Cherry Lane investment consulting company based in New Jersey, USA, said: China’s reaction to this action of the US government depends on the decision of the Beijing government. At the same time, he evaluated the technology war between powerful countries very negatively.
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The Ministry of Commerce of China also announced on Thursday, in response to this action of the Biden government, while expressing great concern about this decision, that it reserves the right to retaliate.
China targeted US semiconductor maker Micron Technology in May after Washington imposed some export restrictions on parts and tools from the US chipmaker to China. Following this action by the Beijing government, the United States accused it of sanctioning other American companies amid growing tensions between the two economic powers.
Tom Plumb, CEO of Plumb Funds, also said about the action of the Biden government: “It is naive to think that the Chinese government will not take countermeasures.”
He explained: China can limit the export of rare elements used in consumer electronics, electric cars and other parts or target other American technology companies.