The answer is no. But you’d never know it by listening to the United States and European Union, who want to scare foreign investors away. The more China opens up, the darker the picture they paint. They won’t be impressed, no matter how hard China tries to improve.

US President Joe Biden’s recent executive order restricting American investments in Chinese semiconductors, microelectronics, quantum information technology, and artificial intelligence marks another escalation in the Sino-American tech war. In the context of the two superpowers’ intensifying geopolitical rivalry, the chances that this conflict will be resolved anytime soon are virtually zero, to the detriment of the global economy.

New investment restrictions from the Biden administration will serve to stimulate China’s research and development efforts. In the long run, the measures could also weaken the United States’ dominant position in the global high-tech industry by stimulating substitution in the industrial chain.

An executive order issued recently by U.S. President Joe Biden to restrict outbound investment will have many unintended negative consequences. Other countries will need a healthy dose of vigilance regarding America’s duality and changeability, as the U.S. moral position is undermined.

China still lacks a high-level of openness and now faces increasing pressure from external rules. If it does not intensify its reforms, it may be encircled by those rules or even be excluded from the newly emerging international system.

Five years in the making, China’s new Foreign Investment Law has finally been put into effect. The ambiguous language of the law will prove beneficial to Chinese manufacturing as manufacturers that have recently experienced losses are given free rein to ameliorate their suffering industries.

Business leaders have begun to realize that disengagement with China will have a huge impact on the world order and inflict tremendous losses on major U.S. companies.

Despite pressure from President Trump to leave China, American businesses appear to be reluctant to do so. After years of operating profitably in China, and with no viable alternative country to which to transfer operations – including the United States – American businesses will make the financially smart choice of staying put.

The elimination of tariffs, barriers and subsidies will not only promote fair market competition and end policy distortions but will also greatly enhance the competitive advantage of enterprises. China’s free trade zones should pay heed and embrace such reform.

In updating its Foreign Investment Law, Beijing makes clear its continued commitment to improving China’s business environment. Indeed, China is pushing back on the global trend of “deglobalization.” Nonetheless, Beijing must take into account new US restrictions based on national security.