US President Joe Biden has signed an executive order limiting specific American investments in critical Chinese technology sectors. 

The move targets companies involved in chip design software and manufacturing tools. The aim is to safeguard sensitive technologies vital for military and intelligence activities from being exploited by countries like China.

The executive order greenlights the US Treasury Secretary to restrict investments in three sectors: semiconductors and microelectronics, quantum tech, and certain AI systems. 

However, critics argue the order is too narrow, leaving out existing technology investments and other essential sectors.

This action underscores the escalating tech competition between the US and China, with implications for their deeply interconnected economies. 

The order affects private equity, venture capital, joint ventures, and greenfield investments, requiring government notification for most cases. 

It is set to roll out next year after public input. The global impact is notable, as the US coordinates with allies like G7 members to align strategies.

More details are accessible here.