Tech Diplomacy Now: White House Orders Restrictions on Tech Investments in China
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Tech Diplomacy Now: White House Orders Restrictions on Tech Investments in China
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TABLE OF CONTENTS
Top News of the Week
Announcements
Latest News
Technology Strategy and Policy
Artificial Intelligence
Telecommunications Networks and Infrastructure
Critical Minerals
Synthetic Biology
Quantum
Advanced Aerospace Technology
Semiconductors and Microelectronics
Energy and Climate
Opinion and Commentary
Top News of the Week – White House Orders Restrictions on Tech Investments in China
After years of controversy over Americans investing in the military modernization of China, the Biden Administration issued an Executive Order directing the Treasury Secretary to analyze how restrictions could be put in place for a small number of advanced technologies. Debate over this action started in the Trump Administration and Biden officials have been examining whether to issue this restriction for nearly two years.
The order designates China (along with Hong Kong and Macau) as a “country of concern” and specifies investment in Chinese artificial intelligence, quantum, and advanced semiconductors sectors should be prohibited for Americans. The Treasury Secretary, in consultation with the Commerce Secretary, has a year to develop “regulations that require United States persons to provide notification of information relative to certain transactions involving covered foreign persons (notifiable transactions) and that prohibit United States persons from engaging in certain other transactions involving covered foreign persons (prohibited transactions).”
Some have raised questions, like: if this is a national emergency, then why hadn’t the Administration used the last two years to develop these regulations? And why spend another year analyzing the problem?
Others view the Executive Order as a prudent step in signaling to investors and companies that conditions have changed drastically. These investors and companies should use this amnesty period to begin unwinding their problematic investments in China and should shy away from any further efforts to help modernize Chinese defense technology.
In response to the White House, the UK, Australia, Germany, and the European Commission appear to be considering their own investment restrictions.
More background:
Executive Order on Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern – Executive Office of the President, August 9, 2023
Biden's new outbound investment restrictions with China are a sensible compromise, but further tightening is likely – Martin Chorzempa, PIIE, August 10, 2023
Outbound Investment Executive Order: Waste of Time – Derek Scissors, AEI, August 10, 2023
CNAS Responds: Outbound Investment Executive Order – CNAS, August 9, 2023
Rishi Sunak weighs following Joe Biden on curbing tech investment in China – FT, August 10, 2023
Labor considers following US on China tech ban – Australian Financial Review, August 14, 2023
EU to analyse US tech curbs in China, says issue also key to Europe – Reuters, August 10, 2023
Announcements
Rewatch our conversation with Daniel F. Runde on his new book, “The American Imperative: Reclaiming Global Leadership Through Soft Power.”
https://www.linkedin.com/feed/update/urn:li:ugcPost:7098000452193067009/
Latest News
Sidelined: How the World Trade Organization lost control of its two most important members — and became irrelevant in the process. – The Wire China, August 13, 2023
How U.S. and China Are Breaking Up, in Charts – WSJ, August 12, 2023
US tech groups back TikTok in challenge to Montana state ban – Reuters, August 8, 2023
Foreign Policy for the Middle Class, Explained – Foreign Policy, August 1, 2023
Technology Strategy and Policy
China accuses US of trying to block its development and demands that technology curbs be repealed – AP, August 10, 2023
U.S.-China Competition in Emerging Technologies: LiDAR – Congressional Research Service, August 14, 2023
GeoTech Wars - Vacation from History Is Over – CSIS, August 8, 2023
The tech standards that shape the future: How Europeans should respond to China’s rising influence – ECFR, August 9, 2023
The White House Office of Science and Technology Policy: Issues and Options for the 118th Congress – Congressional Research Service, July 26, 2023
Artificial Intelligence
White House is fast-tracking executive order on artificial intelligence – Cyberscoop, August 12, 2023
Japan to develop generative AI to speed scientific discovery – Nikkei Asia, July 30, 2023
Stanford University just schooled Congress on AI – Washington Post, August 11, 2023
Telecommunications Networks and Infrastructure
iPhone maker Foxconn’s cautious pivot to India shows limits of ‘China plus one’ – FT, August 14, 2023
Top U.S. cyber official offers 'stark warning' of potential attacks on infrastructure if tensions with China escalate – NBC News, August 12, 2023
Japan to set up cyberdefense network that includes Pacific islands – Nikkei Asia, August 13, 2023
Muting Zoom – The Wire China, August 6, 2023
Critical Minerals
China’s Graphite Grip – The Wire China, August 6, 2023
Behind Meta’s ‘Made in USA’ AR Glasses: a Military-Grade Material – The Information, August 10, 2023
Glencore stockpiled cobalt in first half to support prices – London SouthEast, August 8, 2023
China Set to Boost State Cobalt Reserves After Tumble in Prices – Bloomberg, July 3, 2023
Synthetic Biology
Light-Driven Method Boosts Eco-Friendly Biomanufacturing with Novel Enzyme Reactions – SynBioBeta, August 1, 2023
The Bioconcrete Revolution: A Glimpse into a Greener Future – SynBioBeta, August 5, 2023
Ted Anton on the Brave New World of Synthetic Biology – Literary Hub, July 24, 2023
Synthetic biology and artificial intelligence are set to change all aspects of our lives – Times of Israel, August 8, 2023
Quantum
Quantum computing could give AI the rocket fuel it needs to become transformative, but it’s not there yet – SCMP, August 12, 2023
The PRC Invests in Quantum Technology – Strider, July 2023
The next evolution in tech needs to be nearly frozen to operate. See how it works – CNN, August 13, 2023
Top physicist says chatbots are just ‘glorified tape recorders,’ and predicts a different computing revolution is ahead – Fortune, August 14, 2023
Advanced Aerospace Technology
China, Lawfare, and the Contest for Control of Low Earth Orbit – The Diplomat, August 10, 2023
Earthly Innovations From Outer Space: The Cosmic Impact On Industries – Forbes, August 14, 2023
Russia shoots for the moon as space race against US heats up – Politico, August 10, 2023
Semiconductors and Microelectronics
Chip shortage in Germany's car industry will last years - Audi manager – Reuters, August 10, 2023
China chipmaking tech execs urge greater supply chain self-sufficiency – Nikkei Asia, August 11, 2023
Tokyo Electron Says Chinese Firms Are Buying Up Legacy Chip Tech – Bloomberg, August 10, 2023
Car giant Geely’s new smartphone venture closes chip unit, underscoring difficulties in China’s self-sufficiency drive – SCMP, August 9, 2023
Energy and Climate
Korea battery materials maker onshores China supply chain to win US subsidies – FT, August 14, 2023
Global Oil Demand Catapults to Record High – Foreign Policy, August 11, 2023
How China cornered the market for clean tech – FT, August 8, 2023
Tesla relies on China for 40% of battery supply chain: analysis – Nikkei Asia, August 9, 2023
Opinion and Commentary
The US now accepts national and economic security can’t be separated – Rana Foroohar, FT, August 14, 2023
Extend the Pentagon’s ban on China’s consumer drones – RADM (ret) Mark Montgomery, Defense One, August 14, 2023
China’s Micron Ban Cannot Stand – Robert Atkinson, DC Journal, August 9, 2023
The Ukraine War Has Found the Machinery of Western Governments Wanting – Jack watling, RUSI, August 8, 2023
The Last Word
“At the G7 Summit in Hiroshima in May you saw G7 leaders come together and say: We recognize we have a shared national security interest in ensuring that our most advanced military-relevant, national security-relevant technologies don’t feed the military modernization, the intelligence modernization of our rivals.”
– Statement by Senior Administration Official at the Press Call for the Outbound Investment Executive Order, August 10, 2023
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