Title：Evolution, Impact, and Responses to US Restrictions on Technological Investments in China

Authors：Baichuan Sang, Yunxin Wu, Chuanchuan Li

Abstract：As the United States escalates its review of Investments in China, its economic relationship with China is facing unprecedented challenges. Particularly, following the issuance of Executive Order 14105, the US has further specified investment restrictions in key areas such as semiconductors and microelectronics, quantum information technologies, and artificial intelligence. This paper comprehensively reviews the historical evolution of the US investment review regime towards China, analyzes the underlying logic of the strategic competition between China and the US, and extensively discusses the potential impacts of the new restrictive measures outlined in the executive order on Sino-US relations and the global economy. Additionally, this paper assesses the future trajectory of the US review of investments in China. Despite the adverse impact of US investment restrictions on China’s technological development, China’s core competitiveness in global technological competition and its vast market potential prevent the strategies of the US and its allies from being fully effective. To actively respond to US strategic containment in technology, China needs to take a series of countermeasures that include higher levels of opening-up to the outside world, active participation in global rulemaking, and strengthened international cooperation in technology.

Keywords：Review on Investments in China, Foreign Direct Investment, Investment Restrictions, Technological Competition