Don’t Make It Too Hard for Americans to Invest in China
It’s a mistake to give the federal government too much power over capital flows and economic activity.
Let US investors decide.
Photographer: Qilai Shen/Bloomberg
President Joe Biden is expected to issue an executive order next month restricting US investment in China, in part over concerns about US national security. Those concerns are valid, but the move would cede far too much arbitrary power to the federal government over capital flows and economic activity.
The policy will reportedly cover semiconductors, AI and quantum computing, and on the supply side it applies to venture capital, private equity and some technology transfers and joint ventures. It’s reminiscent of the proposed ban on TikTok. You can debate whether a bill that said “Ban TikTok” — and little else — would be a good idea. In reality, what was proposed would potentially criminalize a broad swath of internet activity in America.