Joe Biden expands ban list of Chinese companies
WASHINGTON — President Joe Biden expanded a prohibition on Americans investing in Chinese companies with purported links to China’s military, adding more businesses to a blacklist that has angered Beijing and caused consternation among investors.
An executive order Biden signed Thursday brings to 59 the total number of Chinese companies banned from receiving American investment and shows how his administration is continuing some of the hard-line China policies left by former President Donald Trump.
There are 59 companies on the list, including technology giant Huawei, Hangzhou Hikvision, Aviation Industry Corporation, China Mobile, China Telecom, China Unicom, Panda Electronics, China Communications Construction Group, China Electronics, China Aerospace, China Spacesat, Semiconductor Manufacturing International and Shaanxi Zhongtian Rocket Technology.
"The administration will not hesitate to prevent US capital from flowing into the PRC's defense and related materiel sector, including companies that support the PRC's military, intelligence and other security research and development programs; or into Chinese companies that develop or use Chinese surveillance technology to facilitate repression or serious human rights abuse," the White House said in a statement.
The new order prevents Americans from investing in those companies, with a 60-day grace period, until Aug. 2, before sanctions begin and a one-year period for Americans already invested in the firms—either directly or via mutual and index or other funds—to divest themselves.
Even before the official announcement, China suggested it would retaliate.