The White House has implemented a ban on certain U.S. investments in China, specifically in sensitive technologies like computer chips, in an effort to reduce risk and address national security concerns. This move suggests that Western allies may be taking lessons from previous national security issues with Russia. The U.S. is making these moves with a focus on potential conflicts in Taiwan, as the consequences of such a conflict would be severe. The ban aims to prevent China’s military from benefiting from American technology and funding in areas that pose a threat to U.S. and allied capabilities. China has responded by criticizing the U.S.’s economic coercion and technological bullying. Analysts suggest that the “decoupling” of the two largest economies in the world, as some refer to it, is driven by preemptive measures to mitigate potential conflicts. Western governments are attempting to learn from their experiences with Russia. The U.S. has been increasing measures to de-risk from China, similar to its response to Russia’s invasion of Ukraine. China is closely observing the West’s approach to Russia, as it plays a significant role in supplying Western technology to the Russian military. The ongoing sanctions against Russia and its circumvention of those sanctions indicate the challenges of effectively countering China’s influence in the event of a conflict with Taiwan. The European Union has been more ambiguous in its approach to China, while the UK is considering following the U.S.’s lead in assessing national security risks associated with certain investments. Some experts argue for a firmer approach, suggesting that a slow decoupling may not be sufficient in the face of potential conflicts. Strict outbound restrictions on certain Chinese tech companies dealing with military-related activities are supported.
U.S. Executive Order on China Demonstrates Adaptation from Russia’s Errors
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