US' reported move to limit tech investment in China violates principles of market economy: MOFCOM
Published: May 12, 2023 01:21 AM
Shu Jueting, a spokesperson of the Ministry of Commerce of China Photo: VCG

Shu Jueting, a spokesperson of the Ministry of Commerce of China Photo: VCG

The US' reported move to restrict domestic enterprises and intending to coerce allies and partners to jointly restrict investment in China is a serious violation of the market economy principles and fair competition, Chinese spokesperson with the Ministry of Commerce said on Thursday, responding to the latest technology blockage attempt by the US against China.

The US President Joe Biden aims to sign an executive order that would limit the investment in key parts of China's economy by the American businesses, Bloomberg reported on April 20, citing people familiar with the matter. The reported plan would take place around the time of the G7 summit due to start on May 19 in Japan. 

The executive order would target investments made by American businesses in key areas of China's economy, specifically in semiconductors, artificial intelligence, and quantum computing, where US firms are actively involved in management. The order would prohibit certain types of investment outright, while others would require companies to notify the government, according to the report.

The US reported move would have a negative impact on the normal operation and decision-making of enterprises, as well as undermine the international economic and trade order and disrupt the stability of global industrial and supply chains. Shu Jueting, the spokesperson, stated during a regular press conference on Thursday that China will firmly oppose this action by the US.

"China will unswervingly promote high-level opening up. Enterprises from all over the world are welcome to invest in China and share development opportunities," the spokesperson said.

The US' latest move came as the Biden administration has stepped up efforts to exclude China from the global semiconductor industrial chain, imposing sweeping export restrictions on shipments of chip-making tools to China last October, and pressuring the Netherlands and Japan to join its chip export controls to China.

In mid-March, the US Commerce Department unveiled "national security guardrails" of its CHIPS and Science Act, limiting recipients of US government funds from investing in most semiconductor manufacturing in countries including China for 10 years after the date of award.

"The US' guardrails are outright technological blockade and protectionism," Foreign Ministry spokesperson Wang Wenbin told a regular press conference on March 22.

In order to maintain its own hegemony, the US has overstretched the concept of national security, abused export control measures, and even coerced some of its allies to block and contain China and attempt to fragment the industrial chains at the latter's expense, Wang said.  

The US moves have seriously violated  the principles of market economy rules and fair competition, and could severely hinder world economic recovery and development, he said.