US President Joe Biden has prepared a revised list of Chinese companies that US companies are not allowed to invest in. According to the United States, those 59 companies are involved in industrial espionage.
With a new decree, US President Joe Biden is building on the initiative of his predecessor, Donald Trump. Last year, he came up with a similar blacklist of Chinese companies. American investors were prevented from doing business with these companies because they are affiliated with or owned by the Chinese military.
Since US judges have already ruled that the previous administration could not prove why a particular company was blacklisted, Biden is taking a different course. It has changed standards and is now targeting companies that are active in the defense or security sector. This concerns, for example, Hikvision, which participates in Chinese re-education camps for Uyghurs.
The list now includes 59 Chinese companies, including technology giant Huawei, China Mobile, China Telecom, China Unicom and SMIC, the country’s largest chip maker. The ban on these companies will go into effect on August 2, but then investors will have another year to wind down their interests.
With the changes, Biden continues to take a hard line on China. The United States has long suspected Chinese companies of passing sensitive data to the government. “The ban is intended to maximize impact on targets while limiting damage to global markets,” a senior US official told the Financial Times.
The Chinese Communist Party has always refuted its involvement in industrial espionage, and previously denounced “arbitrary suppression of investment”.
“Travel enthusiast. Alcohol lover. Friendly entrepreneur. Coffeeaholic. Award-winning writer.”