China has come out strongly opposing US’ final regulations on investment restriction into the country.
Yesterday, reports were released that the administration of President Joe Biden had finalised curbs on US investments in sensitive technologies like semiconductors in China that pose a threat to national security, the Treasury Department said on Monday (Oct 28).
The new rules, which take effect on Jan 2 next year, will prohibit US-headquartered firms, citizens, and permanent residents from engaging in transactions involving cutting-edge technology like semiconductors, artificial intelligence (AI), and quantum computing, the Treasury announced in a statement.Investors will also be required to inform the Treasury about investments in some less advanced technologies “that may contribute to the threat to the national security of the United States”, the statement added. This will include investment in legacy semiconductors, a senior administration official told reporters on Monday.
Meanwhile, traders digesting news saw the Chinese currency renminbi, or the yuan, weakened 107 pips to 7.1390 against the U.S. dollar on the back of another impactful action by the US.
