UK considers response to US ban on tech investments in China

London, August 10 (Reuters) – The United Kingdom announced on Thursday that it is considering its response to the recent decision by U.S. President Joe Biden to impose restrictions on certain technology investments in China. The UK government stated that it is carefully evaluating potential national security concerns in light of the executive order.

Biden’s executive order, signed on Wednesday, grants authority to the U.S. Treasury secretary to limit or prohibit American investments in Chinese entities operating in three specific sectors: semiconductors and microelectronics, quantum information technologies, and certain artificial intelligence systems. The U.S. government has cited national security risks as the primary motivation behind these measures. China, in response, expressed significant concern regarding the move.

A spokesperson for Prime Minister Rishi Sunak’s government noted the significance of the executive order’s guidance on the U.S. stance. The UK intends to closely examine these new measures while conducting ongoing assessments of potential national security risks associated with specific investments.

The UK has recently taken steps to stabilize its relationship with Beijing, following a period marked by challenges related to issues such as security regulations in Hong Kong and allegations of human rights abuses against Uyghur Muslims in Xinjiang.

Foreign Secretary James Cleverly outlined Britain’s revised approach in April, emphasizing the intention to safeguard against national security threats posed by China while also pursuing engagement in areas like trade, investment, and climate change.

In June, Prime Minister Sunak and President Biden solidified a new agreement to reinforce their longstanding security alliance, pledging to deepen economic cooperation in domains such as advanced technologies, clean energy, and critical minerals.

Official data indicates that China has not been a significant destination for British foreign investment, with the total reaching 10.7 billion pounds ($13.6 billion) at the conclusion of 2021. In contrast, the United States received 461.4 billion pounds in British investment, and British investment in Hong Kong amounted to 77.6 billion pounds.

(Note: Conversion rate used: $1 = 0.7857 pounds)