US President Joe Biden delivers remarks on access to mental health care in the East Room of the White House in Washington, US, July 25, 2023. (Photo: REUTERS/Elizabeth Frantz/File Photo)

The order authorizes the US Treasury secretary to prohibit or restrict US investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems.

The measure targets private equity, venture capital, joint ventures and greenfield investments.

Biden said in a letter to Congress he was declaring a national emergency to deal with the threat of advancement by countries like China “in sensitive technologies and products critical to the military, intelligence, surveillance or cyber-enabled capabilities.” 

China said on Thursday it is “gravely concerned” about the order and that it reserves the right to take measures.