Sunday 6/20/21
BUSINESS

Biden expands blacklist of Chinese firms with alleged military ties

The measure builds on an executive order issued by Biden's predecessor Donald Trump.
31 May 2021, US, Arlington County: US President Joe Biden salutes during the annual Memorial Day commemoration in the Memorial Amphitheater at Arlington National Cemetery. Photo: Sgt. Gabriel Silva/US Army via Planet Pix via ZUMA Wire/dpa
US President Joe Biden salutes during the annual Memorial Day commemoration at Arlington National Cemetery. Photo: Sgt. Gabriel Silva/US Army.

US President Joe Biden is tightening up restrictions on Chinese businesses with alleged links to the Chinese military.

Biden signed an executive order on Thursday banning Americans from buying or selling any publicly traded securities from 59 Chinese firms starting 2 August.

China's government protested the plans even before the announcement.

Foreign Office spokesman Wang Wenbin said the US ignored the facts and should "correct its mistakes" and "stop harming [the] global financial market order and the interests of investors."

The measure builds on an executive order issued by Biden's predecessor Donald Trump in November that blacklisted more than 50 Chinese firms with alleged military ties.

Biden's order now covers companies the US accuses of using surveillance technology that facilitates human rights abuses.

The White House said the order "allows the United States to prohibit - in a targeted and scoped manner - US investments in Chinese companies that undermine the security or democratic values of the United States and our allies."

The list will be updated as appropriate, the White House added.

The Department of Defense will no longer be in charge of the list, as was the case under Trump. The Treasury will be the responsible US department.

Huawei, CNOOC

Many of the listed companies were already affected by the earlier order, including the smartphone and network equipment provider Huawei and China's third-biggest oil company CNOOC.

Trump's order had however proved vulnerable. Chinese smartphone provider Xiaomi obtained a ruling from a Washington court to be removed from the list. Xiaomi is also not on Biden's new list.

Under Trump, a trade conflict between the US and China escalated. His administration also took action against various Chinese companies.

Biden announced a review of China policy after he took office in January but has made clear that he intends to pursue a hard line against Beijing.

Chinese telecoms giants China Mobile and China Unicom are also on Biden's list, as well as aerospace companies Avic and China Aerospace Science and Technology Corporation (CASC). Hangzhou Hikvision, a manufacturer of video surveillance technology, is also listed.

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