Washington to ease limits on US investments in China

According to expectations, US President Joe Biden will consider the suspension of extensive limits on US investment in China that have been proposed by some hawks in his administration and Congress.

According to Politico, White House negotiations have been taking place as US President Biden scales back plans for an executive order to monitor US investments in China in favour of concentrating mostly on enhancing deal transparency.

The news provides yet another justification for the AUD/USD pair to continue its week-start uptrend. The cautious attitude in advance of the Australia Retail Sales for January, however, seems to challenge the Aussie pair buyers at least 0.6730 at a time.

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The ban might still forbid American investments in at least one Chinese sector—advanced semiconductors—but it won’t probably prevent capital from going to other high-tech sectors in China.

The order is now expected to largely require U.S. firms to notify federal authorities when doing deals in industries like quantum computing and artificial intelligence, though some other investment prohibitions are being debated.

The administration is likely to establish a trial programme under which US companies entering into new agreements with Chinese artificial intelligence and quantum computing enterprises would have to reveal details to government authorities, even though the final order is still in flux.

When the discussion shifts to the Senate, a hearing on sanctions, export restrictions, and “additional instruments” such outbound investment screening will be held on Tuesday by the Banking Committee.