China US Photo:VCG

The China Council for the Promotion of International Trade (CCPIT) has called on the US to respect the law of market economy and the principle of fair competition in a recent statement over Washington’s investment curbs targeting China, saying the move will jeopardize the normal business exchanges between the two countries and the security and stability of the global industrial supply chain. 

US President Joe Biden signed an executive order on August 9, banning new US investment covering key technology sectors in China such as semiconductors and other microelectronics, quantum computers and certain artificial intelligence applications. Later in mid-August, the US Treasury Department provided an explanation of the specific legislative plans for the executive order and initiated a 45-day period for public comment, with the deadline for submitting comments arriving on September 28. 

The China Chamber of International Commerce (CCOIC) has officially submitted comments on behalf of the Chinese business community to the US government, hoping that the US government will genuinely listen to rational voices and carefully consider the relevant rules, according to a CCPIT spokesperson through an official statement.

The US investment ban categorizes China as the only "country of concern" under this ban, designating the related industries as "specifically sensitive technological areas with significant national security implications." The regulations pertaining to restricted investment entities, restricted investment targets, and restricted transaction types are vague and overly broad, the spokesperson said.

The investment oversight applies “indiscriminately” to both civilian and military purposes, employing a one-size-fits-all approach, the spokesperson claimed, noting that this approach not only increases transaction risks and compliance costs but also introduces significant uncertainty. Furthermore, it will disrupt the industry chains that heavily rely on global division of labor and cooperation.

China is an indispensable part of the global industry chains in semiconductors, artificial intelligence, and quantum information technology. The restrictions will harm US companies in international competition, hinder technological progress, and ultimately undermine US interests, the spokesperson said.

The Chinese business community believes that open and free market access and equal and benign competition are the cornerstones of economic development. A free, fair international economic order and stable global division of labor and cooperation are in the common interest of the global business community，the trade body noted.

Win-win cooperation is the shared vision of the Chinese and American industrial sectors. The Chinese community is willing to strengthen exchanges and collaborate on development with industries from various countries, including the US, the spokesperson said.

In early August, the Chinese Foreign Ministry blasted the US' investment restrictions as "economic coercion" and "tech bullying," urging Washington to immediately withdraw its wrong decision while vowing to firmly safeguard the country's rights and interests.

China deplores and firmly rejects the US' investment restrictions targeting a number of high-tech industries in China and has lodged stern representations with the US side, the ministry said.

Global Times