On August 9, 2023, U.S. President Joe Biden signed an executive order prohibiting certain U.S. investments in sensitive technology in China and requiring government notification of funding in other tech sectors.

The order, which targets private equity, venture capital, joint ventures, and greenfield investments, aims to prevent American capital and expertise from helping China develop technologies that could support its military modernization and undermine U.S. national security.

This matter has spurred significant discussion, leading Real Research, an online survey app, to conduct a survey on Biden restricting investment in high-tech Chinese industries.

Highlights:

  • 45.99% ‘probably’ feel that China’s advancement in these technologies could risk America’s national security
  • Biden prohibiting US tech investments in China is likely to fuel tensions between the two countries, according to 51.76% of respondents
  • 40.7% share China’s disappointment in Biden restricting investment in high-tech Chinese industries

To begin with, 49.5% were well aware of Biden prohibiting US tech investments in China, while 37.59% were only vaguely aware, and 12.91% were unaware.

Is China’s advancement a threat to American national security?

Biden prohibiting US tech investments in China came from concerns about China’s rapid technological advancement critical to the military, intelligence, surveillance, and other cyber-enabled capabilities. He feared the national security of the United States. Respondents in the survey were asked regarding the same. 45.99% said it was probable, while 44.17% are definite it would.  7.48% and 2.36% however, feel like it’s probably not and definitely not respectively.

Chinas-advancement-being-a-threat-to-the-U.S
Fig 1: China’s advancement being a threat to the U.S.

Senate Chuck Schumer praises Biden for the New Order

Senate Democratic leader, Chuck Schumer reportedly praised Biden prohibiting US tech investments in China for standing against the Chinese military rise. Schumer stated that “American investments shouldn’t fund Chinese military advancement.”

When asked about whether they agreed with Schumer’s statement, 46.84% agreed, while 32.75% remained unsure, and 20.41% disagreed.

Similarly, Foreign Affairs Committee chairman, Michael McCaul, expressed his disappointment in the failure to include existing technology investments as well as sectors like biotechnology and energy”. 44.53% agreed and felt that Biden’s order should include existing technological investments and biotechnology. 33.53% felt unsure, and 22.12% disagreed with this.

exclusion-of-existing-technologies-from-the-ban
Fig 2: McCaul’s disappointment in the exclusion of existing technologies from the ban

The order is set to be implemented next year after multiple rounds of public comment, including an initial 45-day comment period to solicit public feedback before making a more formal proposal.

Public-reactions-to-the-implementation-of-the-order-next-year
Fig 3: Public reactions to the implementation of the order next year

Respondents were asked about the public reaction to the above-mentioned; 38.95% said the reactions would be overwhelmingly negative, and 31.79% said it would be more negative.

However, 22.66% said the reactions would be more positive, and 6.6% said it would be overwhelmingly positive.

This indicates that there is a chance that the reactions could be mostly negative rather than positive.

Methodology

Survey TitleSurvey on Biden Restricting Investment in High-tech Chinese Industries
DurationAugust 19 – August 26, 2023
Number of Participants10,000
DemographicsMales and females, aged 21 to 99
Participating Countries Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong Kong) China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greanada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Malaysia, Maldives, Maluritania, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar [Burma], Namibia, Nepal, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.