China Rejects U.S. Plan to Widen Investment Bans as Tech Tensions Escalate
Beijing pushes back against Washington's proposal to expand restrictions on American investment in Chinese technology, the latest flashpoint in an intensifying rivalry between the world's two largest economies.
China has firmly rejected a U.S. proposal that would expand restrictions on American investment in Chinese technology sectors, signaling rising tensions between Washington and Beijing over trade and technology policy [270287].
The Chinese government voiced firm opposition to the move, which would broaden existing rules limiting U.S. outbound investment in sensitive Chinese industries [270287]. The dispute highlights growing friction between the two economic powers as they compete for technological advantage.
The investment dispute comes amid a broader technological rivalry. The United States and China are locked in fierce competition to lead the world in quantum computing, a technology that could reshape economies, security, and scientific research [268324]. Both nations are pouring billions into research and development, racing to build faster, more powerful quantum machines while working to protect their breakthroughs [268324]. Experts say the country that masters this technology first could gain a decisive advantage in fields ranging from medicine to national defense [268324].
The tensions extend to artificial intelligence as well. The United States has ordered the removal of all AI products made by Chinese company DeepSeek from government computer systems, citing espionage and cybersecurity concerns [266766]. The Department of Homeland Security issued the directive, requiring federal agencies to delete DeepSeek products and any third-party services built on its models [266766]. China's Foreign Ministry rejected what it called the "politicization of technological and economic-trade issues" [266766].
Despite ongoing talks between the two countries, no comprehensive agreement covering trade, technology, and security has been reached [265878]. The two sides remain divided on core disputes, and no breakthrough has been announced [265878].
The European Union has also weighed in, warning that it will not be pressured by China. Beijing cautioned Brussels not to "fantasise" that pressure will win concessions, after China offered a goodwill gesture in a recent hybrid-car trade deal [269602]. The EU responded by doubling down on a proposed trade "kill switch" — a tool that would let the bloc quickly limit access to its single market in response to economic coercion [269602]. EU chief Ursula von der Leyen says all 27 leaders support it, with chemicals and machinery as priority sectors [269602].
Meanwhile, China is accelerating its development of solar thermal energy, a technology that stores the sun's heat to generate power even after sunset [269574]. The move could reshape the global race for clean energy dominance, with analysts saying China's scale and speed could lower costs for thermal technology worldwide and challenge competitors in Europe and the United States [269574].
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