In response to the recent US crackdown on investments in sensitive technological sectors, including artificial intelligence, chips and quantum computing, the UK is contemplating more stringent regulations for investments in China.

Joe Biden has signed an order allowing restrictions on US investments in Chinese sectors like semiconductors, microelectronics, quantum info tech, and specific AI systems. China is concerned about this move for national security reasons.

Due to dangers to national security, the US government is limiting foreign investment into China. Similar steps are being considered by UK Chancellor Rishi Sunak, who is also talking with businesses about the problem. Following the US decision, the European Commission will reassess its policy regarding foreign investment. The UK and EU, on the other hand, are not anticipated to soon follow suit. The action coincides with rising conflict between China and its allies over economic and military matters. These steps are intended to bridge the oversight gap between US-based companies and people' offshore investments. Additionally, they will restrict the export of intellectual property to China. The stock market's reaction to Biden's action was quite subdued. Concerns have increased due to the recent deflation in the Chinese economy. Although the US, UK, and China have been working to repair their relations, trade and investment disputes have resulted from economic and security concerns.