U.S. executive order restricting investment in high-tech technology…”Limited impact on Korean economy”
The U.S. government announced the final enforcement rules of an executive order restricting domestic (US) capital investment in China in advanced technologies such as artificial intelligence (AI) and semiconductors. As the conflict between the U.S. and China continues, attention is focused on what effect this executive order will have on our country’s economy. In response to this, the Korean government evaluated that “the relevant regulations are limited to the United States, so the impact on the Korean economy will be limited.”
Conflict between the US and China / Photo = Wikimedia Commons
On the 29th, the Ministry of Trade, Industry and Energy announced a press release related to this.
The data said, “The U.S. Treasury Department’s administrative rules require compliance by Americans or U.S. corporations, and the only country included in the list of concerns so far is China (including Hong Kong and Macau),” and “When looking at compliance obligations, investment restrictions, etc. “The direct impact on our economy is expected to be limited,” he explained.
In the future, the Ministry of Trade, Industry and Energy announced that it plans to closely communicate with domestic industries and experts regarding the administrative order restricting public investment, analyze the impact on our economy from various angles, and actively seek ways to respond.
On the 28th (local time), the U.S. Treasury Department announced ‘Final Rules Implementing the Executive Order Concerning U.S. Investment in Certain National Security Technologies and Products in Countries of Concern.’ This was finally announced after gathering opinions and consulting between ministries on ‘Executive Order 14105’ signed by President Joe Biden in August of last year.
The main purpose of this is to control U.S. capital investment in China related to cutting-edge technologies such as AI, and the purpose is to block U.S. capital from being used for China’s ‘technological rise’ that could threaten the country’s potential security in the future.
Following the announcement of the executive order enforcement rules that will take effect on January 2 next year, it is expected that it will become difficult for U.S. institutions and individuals to invest in stocks and bonds of Chinese high-tech companies, including semiconductor company SMIC, which is called China’s version of TSMC.
Reporter Kim Hyo-jeong hjkim@smartfn.co.kr