US weighing actions to curb investments in China tech

The Biden administration is considering moves that would restrict US investment in Chinese technology companies amid growing tensions between the US and China, according to people familiar with the matter, Report informs via Bloomberg.

The investment curbs taking shape would likely come as an executive order to be signed by President Joe Biden in coming months, one of the people said Friday evening.

A separate action against TikTok Inc., the hugely popular video-sharing app, is a possibility but no action is imminent, the person added. The Commerce Department, the person said, may place further restrictions on chips used for artificial intelligence computing.

At the same time, the White House is in discussions with Congress on legislation requiring companies to disclose beforehand possible investments in certain Chinese industries, another of the people said.

Among options being discussed is the establishment of a system that would give the government the authority to block investments outright, that person said.

The person indicated that the executive order was part of a broader strategy, pointing out that the US had recently curbed sales of semiconductors to China and Russia. Last month, Biden signed into law a broad competition measure that includes about $52 billion to bolster domestic semiconductor research and development.

US companies are under increasing government scrutiny over what they sell to China, whose electronics factories and consumers make it the biggest buyer of chips. Washington has been tightening restrictions on sales to the country, arguing that it represents a security risk.

The Biden administration is also scrutinizing TikTok, paying close heed to whether the Chinese government has access to American customer data. The company, whose parent is Beijing-based Bytedance Ltd., has told lawmakers it has taken steps to protect US user data, including through a contract with Oracle Corp, following then-President Donald Trump’s failed attempt to ban the app from the US.