China Condemns US Investment Policy for ‘Severely Disrupting’ Global Supply Chains

On Thursday, Beijing made a commitment to “protect” its interests in response to a new US policy aimed at limiting investment in Chinese technology. The Chinese government accused the United States of disrupting worldwide supply chains.

Earlier in the day, US President Joe Biden issued an executive order instructing the Treasury Department to place restrictions on specific US investments in China, particularly in sensitive high-tech sectors such as semiconductors, quantum computing, and artificial intelligence.

China’s foreign ministry strongly criticized this move, characterizing it as an effort to “promote anti-globalization and de-sinicization.” The ministry warned that China would steadfastly defend its own rights and interests in response.

A spokesperson from the foreign ministry, who remained anonymous, stated in an online statement, “Beijing strongly opposes and expresses strong dissatisfaction with the United States’ insistence on implementing investment restrictions in China and has made solemn representations to the United States.”

The Chinese commerce ministry, in a separate statement, argued that Biden’s executive order significantly deviates from the market economy and principles of fair competition that the US has historically advocated for. It asserted that this move negatively impacts companies’ regular operational decisions, disrupts the global trade order, and poses a serious threat to the security of global industrial and supply chains.

While the Chinese commerce ministry expressed deep concern over the situation and indicated that China retains the right to take action, specific countermeasures were not explicitly mentioned.

Anticipated to take effect next year, these restrictions coincide with the Biden administration’s broader efforts to enhance its stance in relation to China across various domains: military, economic, and technological.

According to a report by the Financial Times, Chinese internet giants Alibaba, Baidu, Bytedance, and Tencent have collectively ordered $5 billion worth of chips from Nvidia, a California-based company crucial for powering generative artificial intelligence systems. This move comes amid growing apprehensions that the US might impose export restrictions.

An unnamed employee from Baidu was quoted in the report saying, “Without these Nvidia chips, we can’t pursue the training for any large language model.”

China expressed its hope that the US would refrain from artificially obstructing global economic and trade exchanges and cooperation, and avoid creating obstacles for the recovery of the world economy, as conveyed by a spokesperson from the Chinese commerce ministry.

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