US Bans Investment on 59 Chinese Companies

US Bans Investment on 59 Chinese Companies

US President Joe Biden recently signed a new executive order that implements the ban on any investment in any Chinese companies with alleged ties to defense or surveillance technology sectors. The new move expands the scope of a similar ordered implemented during the Trump administration.

Under the said order, any US investment is prohibited on Chinese companies that support the Chinese military-industrial complex, as well as military, intelligence, and security research and development programs.

“I find that the use of Chinese surveillance technology outside the PRC [People’s Republic of China] and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats,” Biden said.

The order places 59 Chinese companies on the blacklist, and these include Aviation Industry Corp of China (AVIC), China Mobile Communications Group, China National Offshore Oil Corp (CNOOC), Hangzhou Hikvision Digital Technology Co Ltd, Huawei Technologies Ltd., and Semiconductor Manufacturing International Corp (SMIC). Notable companies that are under the blacklist include Hikvision–a company that makes surveillance cameras, SMIC–a Chinese semiconductor foundry that made Huawei’s Kirin 710A, and Huawei–who still faces an uphill battle with the trade ban since 2019. Biden’s newly-signed Executive Order will go into effect on August 2.

Biden is currently reviewing a number of US Policies towards China, and his administration extended the deadline set by the former Trump administration while they are working on their new policy framework. These new round of sanctions show that Biden is reinforcing the US Government’s hard stance against China’s intelligence and security research firms, which started during the Trump administration.

While Xiaomi was recently removed from the US Trade Ban, there’s no word if the Biden administration will add any major smartphone makers from China to the list, or if it will include social media platforms like TikTok and WeChat to the blacklist.

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