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U.S. bans some American investments in high-end technology sectors in China

STEVE INSKEEP, HOST:

The United States is banning some American investments in high-end technology sectors in China. NPR Beijing correspondent John Ruwitch told us this could affect China's development of semiconductors, quantum computing and some artificial intelligence systems.

JOHN RUWITCH, BYLINE: These restrictions target investments in China by U.S. private equity companies, venture capital firms, as well as greenfield investments, investments into joint ventures.

SARAH MCCAMMON, HOST:

The Biden administration says it's a national security move.

RUWITCH: They say they're bolstering American security by trying to prevent China from exploiting U.S. money and U.S. knowhow, going into China to develop technology indigenously in China that will give the Chinese military or Chinese intelligence organizations an edge.

INSKEEP: Now, China claims this order is intended to, quote, "politicize and weaponize trade," although U.S. officials insist its scope is not that broad.

RUWITCH: They've made a point of noting that it is not sweeping. It's targeted. It's not being done with economic benefit in mind. It's national security.

INSKEEP: That's our colleague John Ruwitch. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.