Biden tightens rules on U.S. investments in China

President Joe Biden on Wednesday will implement restrictions on American investments in Chinese technology enterprises amid ongoing economic and geopolitical tensions with Beijing.

The guidelines follow warnings from security officials that U.S. investments have effectively financed Chinese military development via tech firms that supply their armed forces, Politico reported.

"The program will prohibit certain investments in entities that engage in specific activities related to these technology areas that pose the most acute national security risks, and will require notification for other sensitive investments," one official told the outlet.

The U.S. Treasury will impose the restrictions, which will bar investment in some Chinese firms developing sensitive technologies and require American companies to notify the government of their future investments in lower-end semiconductor production.

It does not appear that Biden's executive order will apply to existing deals, however.

The administration has struggled to maintain cordial relations with Beijing amid mounting security tensions over China's support for Russia and Beijing's recent attempts at spying on the U.S.

Treasury Secretary Janet Yellen visited China last month where she urged the country to adopt fair economic practices.

"We seek healthy economic competition that is not winner-take-all but that, with a fair set of rules, can benefit both countries over time," she told Chinese Premier Li Qiang at the time.

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.