(JW Insights) Aug 11 -- The Semiconductor Industry Association (SIA) released a statement on August 9 regarding new administration actions related to outbound investment screening and called for access to Chinese market.

“The semiconductor industry recognizes the need to protect national security, and we believe ensuring a strong and globally competitive U.S. semiconductor industry is a vital part of achieving that goal. We are assessing today’s proposal and welcome the opportunity to provide feedback as part of the public comment period. We hope the final rules allow U.S. chip firms to compete on a level-playing field and access key global markets, including China, to promote the long-term strength of the U.S. semiconductor industry and our ability to out-innovate global competitors,” said SIA.

U.S. President Biden issued an executive order on August 10—while narrowly targeted at critical leading-edge technologies with military, surveillance and cyber capabilities—more broadly aims to reorder the flow of American capital and expertise away from China.

The order prohibits U.S. investment in advanced semiconductors and quantum computing, and requires American investors to notify Washington about investments in other types of semiconductors and artificial intelligence. It also bars U.S. citizens and permanent residents from taking part in prohibited deals.

In doing so, White House officials said, the order intends to deny China the know-how, market access and other benefits U.S. venture-capital and private-equity firms bring with their investments. That is likely to further rattle American companies doing business in China amid rising tensions between Washington and Beijing, reported Wall Street Journal.

(Gao J)