US president Joe Biden will next month sign an executive order which limits US technology investments in China, claims a new report.

According to sources cited by Bloomberg, the order will focus on semiconductors, artificial intelligence and quantum computing. Existing investments from US firms in China will not be affected and the order will only prohibit certain transactions. Other deals meanwhile will have to be disclosed to the government.

The order has long been mooted by the White House, but its issuance has slipped multiple times before. Bloomberg reports however that while there is no guarantee it won’t be delayed again, internal discussions are at a more advanced stage and have moved from the substance of the measures to the order’s rollout.

The rules are not set to take effect until 2024, and there will be a comment period as part of a longer rulemaking process to consider the input of stakeholders.

The White House is taking steps to limit China’s technological capabilities and slow down its acceleration as a leader in the space. The politically contentious island of Taiwan, over which China claims ownership, produces 60 per cent of the world’s semiconductors, while there has also been concern over the data collection practices of social media app TikTok – which is owned by China’s Douyin.

Speaking on broader curbs on US investment in China, Treasury secretary Janet Yellen played down their prominence, telling Bloomberg TV earlier this month that “these would not be broad controls that would affect US investment broadly in China, or in my opinion, have a fundamental impact on affecting the investment climate for China.”

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