Biden to order investment ban in 59 Chinese defense and technology companies | Voice of America
WASHINGTON – The Biden administration will issue a new executive order on Thursday banning U.S. entities from buying or selling publicly traded securities for 59 Chinese companies with suspected ties to the defense or surveillance technology sectors, senior officials said administration.
The Treasury Department will apply and update on an “ongoing basis” the new ban list, which replaces that of the Defense Department, officials said, noting that the policy would go into effect on Aug. 2.
The new order, which aims to make a similar Trump-era ban more legally sound, signals the administration’s intention to “ensure that the American people do not fund the military-industrial complex of the United States. People’s Republic of China, “one of the senior officials told reporters.
The inclusion of Chinese surveillance technology companies broadened the scope of the previous order, officials said.
“We expect that in the coming months… we will add additional businesses to the restrictions in the new decree,” an official said.
President Joe Biden reviewed a number of aspects of US policy toward China, and his administration delayed implementation of the previous ordinance while it formulated its new policy framework.
The move is part of a broader set of counter-China measures, including strengthening US alliances and pursuing significant domestic investments to bolster US economic competitiveness, against a backdrop of growing relationships. difficult between the two most powerful countries in the world.
Biden’s Indo-Pacific policy coordinator Kurt Campbell said last month that a period of engagement with China was over and that the dominant paradigm in bilateral relations going forward would be one of competition.
The Treasury Department is expected to release the full list later Thursday and provide guidance on the scope of the surveillance technology, including whether companies facilitate “crackdown or serious human rights abuses” in China or in China. foreigner, said one of the officials. .
“We really want to make sure that any future ban has a solid legal foundation. So our early lists really reflect that,” a second senior administration official said.
Investors would have time to “unfold” their investments, a third official said.
In May, a judge signed an order removing the designation of Chinese cellphone maker Xiaomi, which was among the most high-profile Chinese tech companies the Trump administration has targeted for alleged ties to the Chinese military.
The judge later also suspended a ban on Luokung Technology Corp, a Chinese mapping technology company.
The Defense Ministry also placed similar restrictions on Chinese Semiconductor Manufacturing International Corporation 0981.HK, a key part of China’s national drive to boost its domestic chip industry.