US to maintain Trump decree aimed at limiting China tech deals
The Biden administration plans to maintain new rules that were introduced by former President Trump take effect despite US business objections, according to the Wall Street Journal this evening. The rules focus on technology mergers and acquisitions.
The rule, initially proposed in November, will allow the US Commerce Department to ban technology-related business deals that it deems a threat to national security.
Companies in technology, telecommunications and finance have said that rule could stifle innovation and competitiveness. The rule was originally expected to be delayed ahead of a broad review of US policy on Chinese technology by the Biden administration.
In a comment filed with the Commerce Department in January, The Business Roundtable, a group of CEOs of major companies, said that the rule is “unworkable for US businesses in its current form and should not be considered for final publication without significant revisions.”
A person familiar with the issue told the Wall Street Journal that the rule will not be enforced aggressively which could soften the impact of the rule. However, the rule could signal further trouble for US business which find themselves in the middle of increasingly hostile moves by both the US and China.