What do we know in terms of these investment curbs
? Well, first off, you know, Janet
Yellen and end the Curran will parse her words in
just a minute. But she's saying it's not necessarily
going to be, she's not seeking the US is
not seeking a full blown decoupling. But you could
say that these further restriction curbs by this executive order
coming down the pike in the coming weeks, likely
from the Biden administration would essentially be a further bifurcation
of the global economy split between China's and us national
security interests. And that's what the sources are telling
us this Biden executive order similar to the vein of
Janet Yellen's speech is that these would be on national
security grounds to limit America's company's ability to invest in
key technology and companies in China that would pose national
security threats to the United States technologies. Like of
course, we already have export controls on semiconductor,
advanced semiconductor and the equipment. But this would be
for us companies in semiconductors as well as artificial intelligence
and quantum computing to invest in Chinese companies that perhaps
would have also us management, you know, input
and that would obviously impact private equity venture capital and
there's already being felt in those industries, a investment
chill. So again, Biden administration or Biden could
sign this executive order in the coming weeks leading up
to the G7 summit that starts on May 19th in
Hiroshima. And right now, we're hearing that he
is briefing the G7 allies getting them on board.
But the sources are also saying they don't expect their
counterparts in the G7 to sign their own investment restrictions
at this point. But again, the move has
been put afoot to get these investment curbs and this
executive order going maybe not a decoupling, full blown
decoupling but definitely a further evidence of a bifurcation.