Biden expands US investment ban on Chinese firms

Biden expands US investment ban on Chinese firms
Image courtesy/Biden expands US investment ban on Chinese firms

US President Joe Biden would restrict Americans from investing in dozens of defenses and Chinese technology companies allegedly linked to the military.

The new Executive Order will take effect on 2 August and will affect 59 companies, including Huawei, a telecom giant. The list of companies will be updated on a regular basis.

The move expands an order that ex-President Donald Trump earlier issued.

China suggested retaliation even before the official announcement.

In accordance with the new order, US investors would no longer be permitted to buy or sell securities traded publicly for other firms such as China General Nuclear Power Corporation, China Mobile Limited and Costar Group.

It adds surveillance companies to the previous list of 31 companies and aims to ensure that “US people do not fund the People’s Republic of China’s military industrial complex,” according to a White House official.

“Bans are deliberately targeted and aimed to maximize the impact on the objectives while minimizing damage to the global markets,” stated the official.

The new list will be updated by the Defense Department.

“We fully expect… to add additional firms to the new executive order limits in the coming months,” said the White House.

The surveillance of citizens, particularly Uyghurs in the Xinjiang area, has been reviewed.

China was also accused by the Biden administration of operating aggressively abroad and repressively in its own country.

The relationship between China and the United States is critical for both countries, with Beijing urging the new administration in Washington to repair relations that deteriorated under President Donald Trump.

During their first meeting last month under President Biden’s reign, the top trade negotiators of the two countries held “candid, pragmatic” discussions about their trade ties.

However, President Biden stressed that existing levies will continue for the time being in order to strengthen the American economy, which had been heavily impacted by the pandemic, but is now rebounding.

Speaker Wang Wenbin of the Chinese Ministry of Foreign Affairs suggested that China would repress recent initiatives.

“China will take all necessary actions to resolutely safeguard Chinese companies’ legitimate rights and interests and will resolutely support Chinese companies to protect their legal rights and interests,” he stated.

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