Biden Signs Executive Order Restricting US Investments in China’s High-Tech Sectors, Boosting American Manufacturing and Jobs
US President Joe Biden has signed an executive order directing the Treasury Department to impose restrictions on certain US investments in China’s high-tech sectors. These sectors include semiconductors, quantum computing, and artificial intelligence (AI). The aim of these restrictions is to protect sensitive American technology and bolster the nation’s manufacturing and job market.
The restrictions, expected to take effect next year, are part of Biden’s broader effort to strengthen the US position in relation to China across military, economic, and technological fronts. They also come as Biden gears up for his reelection campaign in 2024, focusing on key bread-and-butter issues such as jobs and the economy.
To highlight the success of his government’s economic policies, Biden visited New Mexico recently to celebrate the groundbreaking of a factory manufacturing wind turbine towers. The project is set to create 250 new jobs and showcases Biden’s commitment to job creation and his brand of Bidenomics. During the event, Biden emphasized the need for the US to lead the world in manufacturing once again.
Biden’s economic policies, known as Bidenomics, remain somewhat unclear to many Americans. He has pushed for two major bills, the CHIPS and Science Act, and the Inflation Reduction Act (IRA), which aim to drive funding and incentives for semiconductor manufacturing, research and development, and green investments in projects. However, the administration’s emphasis on domestic production and industrial sovereignty has somewhat unsettled traditional allies.
Despite potential concerns, Biden is determined to regain the support of working-class voters who felt left behind by globalization. The White House boasts that clean energy investments have reached $110 billion in the US since the signing of the Inflation Reduction Act. Additionally, the CHIPS act has led to over $166 billion being poured into semiconductor and electronics manufacturing.
The executive order restricting investments comes amidst growing fears that the US will begin limiting exports, particularly to Chinese internet giants like Alibaba, Baidu, Bytedance, and Tencent. These companies have reportedly ordered $5 billion worth of Nvidia chips, crucial for generative AI systems. The impact of these restrictions may have wide-ranging effects on global trade and technological advancement.
Since Biden took office in January 2021, over half a trillion dollars has been invested in manufacturing and clean energy. However, it remains to be seen whether these achievements will significantly contribute to Biden’s reelection prospects. As a 80-year-old Democrat, Biden recognizes that his fate may lie in the courts as well as in American factories, and he has yet to comment on the legal challenges facing his predecessor, Donald Trump.
In conclusion, President Biden’s recent executive order restricting US investments in China’s high-tech sectors is a part of his broader agenda to protect American technology and expand domestic manufacturing. As he seeks reelection in 2024, Biden is focusing on job creation and the economy, highlighting successes in clean energy investments and semiconductor manufacturing. However, concerns persist over the potential impact on international trade and alliances. With the 2024 election on the horizon, Biden’s economic policies and legal challenges will likely shape his chances for a second term.
