President Joe Biden has signed an executive order restricting specific US investments in sensitive technology sectors in China. The order targets semiconductors, microelectronics, quantum information technologies, and certain artificial intelligence systems. Biden declared a national emergency, highlighting threats from advances in areas pivotal to military, intelligence, and cyber capabilities, especially from China. While the directive seeks to counter China’s potential to harness U.S. investments for military upgrades, it also aims to maintain the significant trade essential for both nations. Senate Democratic Leader Chuck Schumer commended the move, emphasising the need for legislative reinforcement. The order mainly demands government notification for covered investments, with some being outright prohibited.