The Biden administration plans to outright ban investments in some Chinese technology companies and increase scrutiny of others, three sources said, part of its plan to crack down on the billions that American firms have poured into sensitive Chinese sectors.
The ban is expected to apply to some investments tied to chip production, two of the sources said. The upcoming rules are likely to track sweeping new restrictions the U.S. placed on exports of American artificial intelligence (AI) chips, chipmaking tools and supercomputers, among other technologies, to China in October, sources also said.
The plan will be laid out in an executive order the White House is expected to unveil in the coming months. China hawks in Washington blame American investors for transferring capital and valuable know-how to Chinese tech companies that could help advance Beijing's military capabilities.