Innovation, Science and Industry Minister François-Philippe Champagne responds to a question from the media in Ottawa in June.Adrian Wyld/The Canadian Press
Canadian officials are consulting with Washington about how to deal with an executive order President Joe Biden signed Wednesday to prohibit some new U.S. investment in China in sensitive technologies like computer chips.
The long-awaited presidential order authorizes the U.S. Treasury Secretary to prohibit or restrict U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems.
The administration said the restrictions would apply to “narrow subsets” of the three areas but did not give specifics. The proposal is open for public input.
Audrey Champoux, press secretary for Innovation Minister François-Philippe Champagne said officials from the department as well as Global Affairs and Finance are “in close contact with their U.S. counterparts regarding the executive order outlining the intention to regulate U.S.-outbound investments.”
Ms. Champoux did not say whether Ottawa would adopt similar measures but noted the government has taken steps to address national security concerns involving foreign investment through proposed changes to the Investment Canada Act.
“We will continue to monitor any potential impacts for Canadian companies as this situation unfolds,” she said.
The presidential order is aimed at preventing U.S. investment and research knowledge from being used by China to obtain technologies that could support the Asian country’s military modernization and undermine U.S. national security. The measure targets private equity, venture capital, joint ventures and greenfield investments.
With files from Reuters.
Robert Fife