The United States will continue a ban on US investment in Trump-era Chinese companies that Washington says are owned or controlled by the Chinese military, President Joe Biden said Tuesday.
Biden, a Democrat who has continued some of President Donald Trump’s policies toward China, said he will extend restrictions enshrined in his Republican predecessor’s November 2020 executive order. and modernizing its military, intelligence and other security apparatus, allowing the PRC to directly threaten the United States’ homeland and the United States’ armed forces abroad,” Biden said in a letter to House Speaker Nancy Pelosi. delegates.
The executive order was originally intended to prevent US investment firms, pension funds and others from buying shares of Chinese companies identified by the Defense Ministry as backed by the Chinese military. Biden made changes in June to what his team described as the “legally flawed” Trump-era order, tasking the Treasury Department with enforcing and updating a new list of about 59 companies that replace the previous list of the Trump administration. Pentagon replaced. .
US entities are not allowed to buy or sell publicly traded securities in target companies, including Chinese chipmaker SMIC and oil giant CNOOC. Biden’s new list added about 10 publicly traded companies but removed some other top names, including Commercial Aircraft Corp of China (COMAC), which is at the forefront of competition with Boeing Co and Airbus, and two that are challenging the ban in court – Gowin Semiconductor Corp and Luokung Technology Corp.
Chinese hawks in Washington cheered Biden’s expansion of the policy, but targeted the government’s failure to add new companies to the list since the June revisions. “While we should welcome the extension of the ‘national emergency’… it is difficult to understand why not a single Chinese company has been added to this modest list of capital markets sanctions since the order was issued on June 3,” said Roger Robinson, former chairman of the Congressional US-China Economic and Security Review Commission.
Biden said China’s military-industrial complex, supported by its intelligence and other security services, continues to pose an unusual and extraordinary threat.
(This story has not been edited by Devdiscourse staff and is generated automatically from a syndicated feed.)