This article only represents the author's own views.
A new executive order by U.S. President Joe Biden could hit Chinese tech firms where it hurts the most by cutting off the funds they need to grow in their early stages. And while stock market reaction was relatively muted, perhaps because the latest move was targeted at just a few sectors, the action could have a much bigger effect than early reactions might suggest.
Biden’s order signed on Wednesday seeks to stop the flow of U.S. investment dollars into a small number of cutting-edge high-tech fields in China, including semiconductors, quantum information technologies, and artificial intelligence, according to media reports. Details are still thin, probably because many are still being worked out.