Washington / Beijing – US President Joe Biden is stepping up crackdown on Chinese companies with alleged links to the People’s Republic’s military.
Biden signed an order banning Americans from trading in the securities of an initial 59 Chinese companies from August 2nd. The Chinese government protested the plans even before the announcement. Foreign Office spokesman Wang Wenbin said the US is ignoring the facts, should “correct its mistakes and stop harming financial markets and the interests of investors.”
The US President’s move builds on an order made by Biden’s predecessor Donald Trump in November, as a result of which more than 40 companies with alleged military connections were blacklisted. Biden’s order now also affects companies accused by the US of using surveillance technology to contribute to human rights violations.
The White House said the ruling “allows the United States to selectively and to a certain extent prohibit US investments in Chinese companies that undermine the security or democratic values of the United States and our allies.” The measure is “in line with the commitment of the Biden government to protect the US’s central national security interests and democratic values.” The list will be updated as necessary. The Ministry of Finance is responsible, no longer – as was the case with Trump’s regulation – the Ministry of Defense.
Many of the companies now listed were already affected by the earlier ruling, including network equipment and smartphone provider Huawei and China’s third-largest state-owned oil company, CNOOC. Trump’s decision had turned out to be vulnerable: For example, the Chinese smartphone provider Xiaomi managed to be removed from the blacklist in a court in Washington. Xiaomi is also not on the new list.
The Republican Trump started a trade war with China three years ago, which escalated with mutual punitive tariffs and continues to this day. His government also took action against various Chinese companies. After taking office in January, the Democrat Biden announced a review of China’s policy, but already let it be known that he, too, wanted to pursue a tough course.
The blacklist also includes Chinese telecom giants China Mobile and China Unicom, as well as aerospace companies such as Avic and China Aerospace Science and Technology Corporation (CASC). Hangzhou Hikvision, a manufacturer of video surveillance technology, is also on the list.
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