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Biden bans investment in Chinese defense and tech companies

Washington DC: To extend the scope of the Trump era’s orders, President Joe Biden signed an executive order last week banning US companies from investing in Chinese companies allegedly related to defense and surveillance technology. Against China.

The order, according to the order, prohibits US investment firms from supporting the military-industrial complex in China, as well as military, intelligence, and security R & D programs.

The Treasury will implement a new list of about 59 Chinese companies, update it on a “rolling basis”, ban the buying and selling of listed securities of the target companies, and replace the Pentagon’s previous list, government officials said. I told reporters. ..

The new list includes major Pentagon listings such as Aviation Industry Corporation of China, China Mobile Communications Group, China National Offshore Oil Corporation, Hangzhou Hikvision Digital Technology Co Ltd, Huawei Technologies Ltd, and Semiconductor Manufacturing International. A Chinese company was included.Co., Ltd.

However, it was previously identified by China’s Comac, which is at the forefront of China’s efforts to compete with Boeing and Airbus, and Gowin Semiconductor and Luokung Technology, which challenged the ban in court. Some companies are not included.

“We are fully looking forward to adding more companies to the new executive order limits in the coming months,” a senior official said, according to Reuters.

A senior government official said the Treasury would elaborate on the scope of surveillance technology, including whether companies are promoting “repression or serious human rights abuses.”

According to the order, the ban will come into effect on August 2 for currently listed companies. US investors need to divest within 365 days.

Former Department of Homeland Security employee Stewart Baker said the Treasury “has a better place to enforce the ban than the Pentagon because of the regulatory and legal system in place.” ..

According to Reuters, Baker continues the tradition that the Biden administration “Mr. Trump was right in principle and wrong in enforcement. Correct it.”

Biden bans investment in Chinese defense and tech companies

Source link Biden bans investment in Chinese defense and tech companies

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