Biden order bans investment in Chinese defense, tech firms

President Biden has signed an government order that expands a Trump-era ban on US investment in dozens of Chinese firms with alleged ties to protection or surveillance expertise sectors, citing “unusual and extraordinary threats.”

The White House stated in a press release that the order will “ensure that U.S. investments are not supporting Chinese companies that undermine the security or values of the United States and our allies.”

China urged the US to respect market regulation and precept and withdraw the investment ban record, international ministry spokesman Wang Wenbin stated in a information briefing.

The Treasury Department will implement and replace on a “rolling basis” the brand new record of about 59 firms that bars shopping for or promoting publicly traded securities in goal firms — and replaces an earlier record from the Department of Defense.

Huawei was added to the Defense Department's list as a company to monitor amid surveillance and human rights issues.
Huawei was added to the Defense Department’s record as an organization to watch amid surveillance and human rights points.
AFP /AFP through Getty Images

The Biden administration says the transfer expands the scope of a Trump-era order.

The president’s order prevents American investment from supporting the Chinese “military-industrial complex,” in addition to army, intelligence and safety analysis and growth packages.

“[T]he use of Chinese surveillance technology outside the PRC, as well as the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuses, constitute unusual and extraordinary threats,” The White House stated, utilizing the acronym for the People’s Republic of China.

Chinese Foreign Minister Wang Yi attends a virtual meeting of foreign ministers of the BRICS countries, namely Brazil, Russia, India, China and South Africa, in Guiyang, China.
Chinese Foreign Minister Wang Yi attends a digital assembly of international ministers of the BRICS nations, particularly Brazil, Russia, India, China and South Africa, in Guiyang, China.
Yang Wenbin/Xinhua through Getty Images

Chinese firms included on the earlier Defense Department record additionally have been added to the up to date record.

They embrace Aviation Industry Corp. of China, China Mobile Communications Group, China National Offshore Oil Corp, Hangzhou Hikvision Digital Technology Co. Ltd, Huawei Technologies Ltd and Semiconductor Manufacturing International Corp.

“We fully expect that in the months ahead … we’ll be adding additional companies to the new executive order’s restrictions,” a senior administration official advised reporters Thursday.

A China National Offshore Oil Corporation’s oil rig seen in China’s Bohai Sea.
China Photos/Getty Images
A Chinese-developed passenger plane is tested  at Shanghai Pudong International Airport in Shanghai.
A Chinese-developed passenger aircraft is examined at Shanghai Pudong International Airport in Shanghai.
STR/AFP through Getty Images

Another official stated the inclusion of Chinese surveillance expertise firms expanded the scope of final yr’s Trump administration order final yr.

“The US government is stretching the concept of national security, abusing national power and using every possible means to suppress and restrict Chinese enterprises,” stated Wang, the Chinese Foreign Ministry spokesman.

“We are firmly opposed to this,” he advised reporters at an everyday briefing Friday as he urged the US to withdraw the record.

Chinese President Xi Jinping meets with then- Vice President Joe Biden on Sept. 24, 2015.
Chinese President Xi Jinping meets with then- Vice President Joe Biden on Sept. 24, 2015.
Xinhua/Huang Jingwen through Getty Images

Senior officers stated the Treasury Department will present steering on the scope of surveillance expertise, together with whether or not firms are facilitating “repression or serious human rights abuses.”

“We really want to make sure that any future prohibitions are on legally solid ground. So, our first listings really reflect that,” a second senior administration official stated.

On Friday, Chinese traders disregarded the record, with many of the shares named making beneficial properties.

The Hangzhou HikVision Digital Technology Co., Ltd. headquarters is seen on February 20, 2020 in Hangzhou, Zhejiang Province of China.
The Hangzhou Hikvision Digital Technology Co. Ltd headquarters in Hangzhou, China.
Zhu Difeng/VCG through Getty Images

Wu Kan, portfolio supervisor at Soochow Securities Co, advised Reuters the listed firms have been in very important industries corresponding to protection and semiconductors and would get authorities help.

“China has given up illusions and is fully prepared for decoupling in those strategic sectors that relate to national security…so the new ban list is not really a surprise,” he stated.

With Post wires

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