The Biden administration escalated America's trade war with China on Wednesday, as President Joe Biden declared a new national emergency and immediately used it as the justification for creating a new screening system that will limit Americans' ability to invest overseas.
The new rules, which have been in development since last year, will prohibit private equity and venture capital firms from investing in China-based businesses working in a variety of high-tech fields, The New York Times reports. The ban will apply to businesses working to develop artificial intelligence and those that build or develop semiconductors, the tiny chips that power modern computers. American investments that flow to other Chinese businesses will also be subject to new government scrutiny.
